Home Posts tagged Employment (Page 23)
Chamber Corners Departments

CHICOPEE CHAMBER OF COMMERCE

www.chicopeechamber.org

(413) 594-2101

• August 1: Part 3 of a five-seminar series: “Conquering the Challenge of Employment Law Compliance for Small Businesses: What You Need to Know and How to Stay in Compliance,” from 8 to 10:30 a.m. at the PeoplesBank Conference Room, 330 Whitney Ave. in Holyoke. Presenter will be Layla Taylor, Esq. This program will focus on:

• Identifying worker-classification issues (independent contractor versus employee);

• Wage-and-hour basics (minimum wage, overtime, exemptions, and child-labor laws);

• Immigration (I-9 compliance);

• Discrimination laws (federal and state, reasonable accommodation issues);

• Benefits (leave laws and health insurance);

• Communicating with employees without creating a contract; and

• How to stay in compliance (free resources and when to contact a professional).

• August 22: Part 4 of a five-seminar series: ‘Marketing Strategies that Lead to Growth,’ from 8 to 10:30 a.m. at PeoplesBank Conference Room, 330 Whitney Ave. in Holyoke. Presenter will be Mary McCarthy. Concerned about delivering your profit? Unsure how to reach your target audience? Overwhelmed with all the media options available? Smaller businesses often lack the time to execute their marketing tasks, and are challenged with budgetary constraints. This workshop is designed for businesses seeking cost-efficient and effective marketing strategies that lead to growth and seamless communication with their customers. Attendees will learn:

• Branding strategies that will effectively convey your marketing messages;

• How to distinguish your marketing plan from your competition;

• Effective ways to reach your target audience and foster loyal relationships;

• How to connect with today’s tech-savvy customers through social media; and

• Networking essentials that will help you get more business.

 

HOLYOKE CHAMBER OF COMMERCE

www.holycham.com

(413) 534-3376

• Sept. 18: Save the date! Chamber Annual Clambake, 5-7:30 p.m. Plan now to make the clambake your employee picnic or employee-appreciation event. Watch for more details.

 

MASSACHUSETTS CHAMBER OF COMMERCE

(413) 525-2506

• Nov. 12: Massachusetts Chamber of Commerce Annual Meeting & Awards Luncheon, 9 a.m., at the DoubleTree, Westborough. For more information on ticket sales and sponsorship opportunities, call the chamber office at (413) 525-2506 or e-mail [email protected]

 

WEST OF THE RIVER CHAMBER OF COMMERCE

www.ourwrc.com

413-426-3880

• August 19: West of the River Chamber of Commerce 10th Annual Golf Tournament, Springfield Country Club, West Springfield. Cost: $125 per golfer. Presenting Sponsor: Hard Rock Hotel and Casino of New England. For more information on registration and sponsorship opportunities, call the chamber office at (413) 426-3880 or e-mail [email protected].

• Sept. 4: Wicked Wednesday, hosted By E.B’s, 5-7 p.m. Wicked Wednesdays are monthly social events hosted by various businesses and restaurants. These events bring members and non-members together to network in a laid-back atmosphere. Cost: free for chamber members, $10 for non-members (event is open to the public; you must pay at the door if you’re a non-member). For more information, call the chamber office at (413) 426-3880, or e-mail [email protected].

 

GREATER WESTFIELD CHAMBER OF COMMERCE

www.westfieldbiz.org

(413) 568-1618

• Sept. 11: September WestNet, 5-7 p.m., at the Holiday Inn Express, 39 Southampton Road, Westfield. Come and meet chamber members and bring your business cards for a great networking opportunity. Cost: $10 cash for chamber members, $15 cash for non-members. Walk-ins are welcome. Call the chamber at (413) 568-1618, or e-mail Pam Bussell at [email protected]. Your first WestNet is always free.

 

Briefcase Departments

Holyoke Medical Center Taps New Jersey’s Hatiras as New President, CEO
HOLYOKE — The board of directors of Valley Health Systems and Holyoke Medical Center have announced that Spiros Hatiras will become the next president and CEO of Holyoke Medical Center and its affiliates. Hatiras will succeed Hank Porten, who is stepping down after nearly 28 years in that role. “We are absolutely delighted to bring such an accomplished and passionate leader to our hospital and community,” said Priscilla Mandrachia, chairwoman of the board of directors of Valley Health Systems, the parent company of Holyoke Medical Center and its affiliates. “The search committee, after an exhaustive process, was particularly impressed with Mr. Hatiras’ understanding of our culture and love of community healthcare. He has expertise in reform initiatives and a deep commitment to physicians, staff, and quality services. Valley Health Systems and Holyoke Medical Center have been fortunate to have had the leadership of our present CEO, Hank Porten, for 28 years.  We expect Mr. Hatiras to build on Mr. Porten’s accomplishments and lead our healthcare system successfully into the future.” Hatiras previously served as president and CEO of Hoboken University Medical Center in New Jersey, a 333-bed facility with nearly 500 physicians and nurses offering a full range of medical services. During his tenure there, Hatiras cut operating losses in half over two consecutive fiscal years without reducing staff, and oversaw the implementation of electronic medical records. “We all know healthcare is going through some very complicated changes, and Mr. Hatiras has demonstrated the knowledge and ability to meet these challenges head on,” said Peter Connor, chairman of the board of directors at Holyoke Medical Center. “He is a proven leader who understands our mission as a community hospital and will help guide us through the complexities of healthcare reform while maintaining a focus on quality care and patient satisfaction.” Currently serving as chief operating officer of NIT Health in New York, specializing in the implementation of electronic medical records for hospitals and health care systems, Hatiras has had a distinguished healthcare career in New Jersey. In addition to his work at Hoboken University Medical Center amid a complicated transition to private ownership, he has also served as vice president of post-acute, ancillary, and support services for Bon Secours Health System and corporate director of rehabilitation services for Franciscan Health System of New Jersey. “I am extremely excited to join Valley Health Systems and Holyoke Medical Center,” Hatiras said. “It’s the best fit for both of us. I’m returning to do what I love the best, working in a community hospital and helping it succeed. And the hospital’s commitment to community health is exactly what healthcare reform should be embracing. I look forward to working with the entire organization to build upon the solid foundation that Hank has left for us. The hospital is positioned well for the future. I’m ready to go.” Hatiras is certified in healthcare management by the American College of Healthcare Executives. He has a master’s degree in health care management from New York University and a bachelor’s degree in physical therapy from the Athens Institute of Technology in Athens, Greece. He currently lives with his wife, Gwen, and two children, Ava and Zach, in New Jersey. “My wife and I are very excited about moving our family to Massachusetts,” Hatiras said. “It’s the perfect location for us.” He will assume leadership of Holyoke Medical Center in early September, at which time he will also move to the area. Hatiras’ wife and children will relocate after his daughter Ava’s graduation from high school next year. Holyoke Medical Center is a 198-bed facility with 1,200 employees, including more than 260 physicians and consulting staff.

Obama Administration Delays Healthcare Law’s Insurance Mandate
WASHINGTON, D.C. — Earlier this month, President Obama’s administration announced a one-year delay in his healthcare law’s mandate that larger employers provide coverage for their workers or pay penalties. The decision postpones the effective date beyond next year’s midterm elections into 2015. Employer groups welcomed the news of the concession, while Republicans made it clear that they would not cease to make the law a key campaign issue for the third straight election cycle. While the postponement does not affect other central provisions of the law, including those establishing health-insurance marketplaces in the states, known as exchanges, it throws into disarray the administration’s effort to put those provisions into effect by Jan. 1. Under the law, most Americans will be required to have insurance in January 2014, or they will be subject to tax penalties. The administration’s announcement did not address delaying that requirement or those penalties. Administration officials sought to put the action in a positive light. “We have heard concerns about the complexity of the requirements and the need for more time to implement them effectively,” Mark Mazur, assistant Treasury secretary, wrote on his department’s website. “We recognize that the vast majority of businesses that will need to do this reporting already provide health insurance to their workers, and we want to make sure it is easy for others to do so.” The Affordable Care Act, signed into law in 2010, originally required employers with more than 50 full-time workers to offer them affordable health insurance starting in 2014 or face fines. Some companies with payrolls just above that threshold said they would cut jobs or switch some full-time workers to part-time employment so that they could avoid providing coverage. Under the provisions to set up state-based marketplaces for coverage for uninsured Americans, subsidies are supposed to be available for lower- and middle-income people who qualify and are not insured through their employers. By delaying the mandate for businesses and its reporting requirements, the government may be unable to confirm before 2015 whether employers are offering insurance to their employees, making it difficult for the exchanges to know who is entitled to subsidies to help pay for policies. Enrollment in the exchanges is to begin Oct. 1, with insurance coverage taking effect Jan. 1. “We are on target to open the health-insurance marketplace on Oct. 1, where small businesses and ordinary Americans will be able to go to one place to learn about their coverage options and make side-by-side comparisons of each plan’s price and benefits before they make their decision,” Valerie Jarrett, Obama’s senior adviser and liaison to the business community, wrote on the White House website.

Economic Growth Remains Sluggish in Massachusetts
BOSTON — Even as the Massachusetts economy shows some genuine signs of strength, contractionary federal government fiscal policy is slowing economic growth in Massachusetts, according to a recent report by regional economists for MassBenchmarks. In the coming months, assuming these policies stay in place, a further retarding of economic growth can be expected. At the same time, the state’s labor market continues to be under considerable stress and faces profound challenges that are not fully reflected in the state’s headline unemployment rate. The strengthening of the state housing market is the most prominent sign of strength in the state economy. Residential house prices, sales, and building permits are all on the rise. As a result, employment in the construction sector is increasing, but it remains well below its pre-recession levels. The unemployment rate, despite a recent uptick, remains one percentage point below the national level. Strong state sales-tax collections reflect the willingness of households to spend, especially for new automobiles. But these signs of life are being undermined by federal tax and budget policies that have been implemented since the first of the year. On the tax side, income-tax rates were increased for upper-income households on Jan. 1. In addition, the temporary payroll tax cut, which had been implemented during the recession, was not extended. This has a more widespread impact, with a disproportionate burden being placed on low-income households. Had these tax increases been offset by increased federal investment, their impact would have been modest, but instead the federal government elected to adopt significant spending cuts. Federal budget sequestration, implemented in March, has an obvious impact on the state’s research-intensive enterprises and government contractors. But its impact also extends to Head Start and other educational programs, career centers, job-training services, and Community Development Block Grant funds, all of which have experienced significant cuts in recent months. The impact of these federal policies can be seen in the state’s recent economic performance. According to the MassBenchmarks Current Economic Index, growth in state gross domestic product slowed to a 1% annualized rate of growth in April and May. Employment growth in the state has virtually stalled, and state withholding tax growth reflects this. And growing international competition and the economic challenges facing the state’s major trading partners, including Canada, the European Union, and Asia, appear to be taking their toll on the Commonwealth’s export activity, which declined by 11.1% between April 2012 and April 2013. While labor conditions in Massachusetts appear to be better than those nationally, there are signs of considerable stress in the state labor market. Underemployment (those working part-time but wanting full-time work) has risen during the first five months of the year, and hidden unemployment (those who are out of work, have not looked for a job in the last four weeks, and would take a job if offered) is also on the rise. The plight of younger and less skilled workers is of particular concern, the report notes, as the extent of their disconnection from the labor market is troublingly high, and the longer it lasts, the more difficult it will be to remedy. For these workers, the improvement in headline unemployment is of little consolation, as their prospects for employment are being limited by a recovery that is being undermined by counterproductive federal policy choices.

Construction Industry Adds 13,000 Jobs in June
WASHINGTON, D.C. — In June, the nation’s construction industry unemployment rate fell to 9.8% for the first time since September 2007 with the addition of 13,000 jobs, according the July 5 report by the Department of Labor. Since June 2012, the industry has added 190,000 jobs, a 3.4% increase. Every major category of construction experienced gains in employment for the month. Non-residential building construction employment increased by 700 jobs for the month and has added 16,400 jobs, or 2.5%, during the last 12 months. Residential building construction employment inched up by 100 jobs in June and is up by 13,100 jobs, or 2.3%, compared to the same time last year. Non-residential specialty trade contractors gained 2,100 jobs for the month and have added 47,100 jobs, or 2.3%, during the last 12 months. Residential specialty trade contractors have added 5,100 jobs since May and gained 77,100 jobs, or 5.2%, since June 2012. Heavy and civil-engineering construction employment increased by 5,600 jobs last month, and the sector has added 36,300 jobs, or 4.2%, from one year ago. Across all industries, the nation added 195,000 jobs as the private sector expanded by 202,000 jobs and the public sector shrunk by 7,000 jobs. However, the nation’s unemployment rate was unchanged from the previous month at 7.6% and remains lower than the 8.2% registered in June 2012. “Today’s employment report is positive news for the nation’s construction industry,” said Associated Builders and Contractors Chief Economist Anirban Basu. “While the economy continues to face a number of headwinds, including most recently in the form of higher interest rates, the wealth effect associated with rising equity markets and home prices dominates the recovery. The result has been steady expansion in consumer spending, which is associated with expanding job creation in closely aligned sectors of the economy. For construction contractors, the implication is that the volume of work associated with lodging and shopping-center construction will continue to march higher.” Basu noted that one-third of the construction jobs added last month were added by specialty trade contractors. “There was also evidence of more people falling into part-time work, and the broadest measure of unemployment, which includes discouraged workers and people working part-time for economic reasons, rose to 14.3% in June. Despite this increase, the construction industry’s diminishing unemployment rate shows that societal income tied to wages and salaries continues to expand slowly, which suggests the economy will only grow at a moderate pace. That should be enough to help drive nonresidential construction spending higher, but progress will remain gradual.”

Horace Smith Fund Awards $276,000 to Area Students
SPRINGFIELD — On June 13, The Horace Smith Fund staged its 114th corporators’ meeting and scholarship awards ceremony at Elms College. Samalid Hogan, chair of the board of trustees, announced 24 scholarship and three fellowship recipients this year. “Providing that students maintain at least a B average in college, each scholarship provides a total of $10,000 over four years, and each fellowship provides $12,000 over three years,” she told the audience comprised of the students, parents, trustees, and corporators. “Therefore, The Horace Smith Fund is happy to be able to grant a total award of $276,000 to area students this year.” The Horace Smith Fund was established in 1899 by a successful and generous philanthropist named Horace Smith, according to James Broderick, chair of the scholarship committee. “He and Daniel Wesson were the founders of Smith & Wesson, located in Springfield. Mr. Smith’s will provided that the residual of his estate, after several bequests to relatives and institutions, was to be used for public purposes at the discretion of his executors. They decided that it should be used to help deserving students finance their education.” The scholarships and fellowships are named for Walter F. Barr, a West Springfield businessman, whose widow left the bulk of the family estate to the Horace Smith Fund in 1950. Recipients must be residents of Hampden County. The keynote speaker at the awards ceremony, attorney Michael Gove, was a past recipient of the Walter S. Barr Scholarship and Fellowship.

Chamber Corners Departments

AMHERST AREA CHAMBER OF COMMERCE
www.amherstarea.com
413-253-0700
• July 15: Amherst Area Chamber of Commerce 10th Annual Golf Tournament, 10:30 a.m. to 6:30 p.m., at Hickory Ridge Golf Course, Pomeroy Lane, Amherst.
Registration and lunch: 10:30 a.m. to noon; shotgun start: noon; reception and dinner: 5 p.m. Cost: $125 per player. Presented by the Hampshire Hospitality Group.

CHICOPEE CHAMBER OF COMMERCE
www.chicopeechamber.org
(413) 594-2101
• August 1: Part 3 of a five-seminar series: “Conquering the Challenge of Employment Law Compliance for Small Businesses: What You Need to Know and How to Stay in Compliance,” from 8 to 10:30 a.m. at the PeoplesBank Conference Room, 330 Whitney Ave. in Holyoke. Presenter will be Layla Taylor, Esq. This program will focus on:
• Identifying worker-classification issues (independent contractor versus employee);
• Wage-and-hour basics (minimum wage, overtime, exemptions, and child-labor laws);
• Immigration (I-9 compliance);
• Discrimination laws (federal and state, reasonable accommodation issues);
• Benefits (leave laws and health insurance);
• Communicating with employees without creating a contract; and
• How to stay in compliance (free resources and when to contact a professional).
• August 22: Part 4 of a five-seminar series: ‘Marketing Strategies that Lead to Growth,’ from 8 to 10:30 a.m. at PeoplesBank Conference Room, 330 Whitney Ave. in Holyoke. Presenter will be Mary McCarthy. Concerned about delivering your profit? Unsure how to reach your target audience? Overwhelmed with all the media options available? Smaller businesses often lack the time to execute their marketing tasks, and are challenged with budgetary constraints. This workshop is designed for businesses seeking cost-efficient and effective marketing strategies that lead to growth and seamless communication with their customers. Attendees will learn:
• Branding strategies that will effectively convey your marketing messages;
• How to distinguish your marketing plan from your competition;
• Effective ways to reach your target audience and foster loyal relationships;
• How to connect with today’s tech-savvy customers through social media; and
• Networking essentials that will help you get more business.

GREATER EASTHAMPTON CHAMBER OF COMMERCE
www.easthamptonchamber.org
(413) 527-9414
• July 26: The 29th Annual Golf Tournament, starting at 9 a.m. at Southampton Country Club. Reserve now before it sells out. Team fee: $400. Tee sponsorships available for $75/$125. Would you like to donate a raffle prize and/or to the golfer’s gift bag? Contact the chamber to sign up a team, arrange a tee sponsor, or with your raffle prize or gift donation.

HOLYOKE CHAMBER OF COMMERCE
www.holycham.com
(413) 534-3376
• July 17: Chamber Business Connections, 5-7 p.m. at the Volleyball Hall of Fame, 444 Dwight St., Holyoke. Networking, refreshments, door prizes, and 50/50 raffle.
• Sept. 18: Save the date! Chamber Annual Clambake, 5-7:30 p.m. Plan now to make the clambake your employee picnic or employee-appreciation event. Watch for more details.

MASSACHUSETTS CHAMBER OF COMMERCE
(413) 525-2506
• July 22: Massachusetts Chamber of Commerce Golf Tournament at Tekoa Country Club, Westfield. Shotgun start at 11 a.m. Cost: $100 per golfer. For more information on registration and sponsorship opportunities, call (413) 525-2506 or e-mail [email protected]
• Nov. 12: Massachusetts Chamber of Commerce Annual Meeting & Awards Luncheon, 9 a.m., at the DoubleTree, Westborough. For more information on ticket sales and sponsorship opportunities, call the chamber office at (413) 525-2506 or e-mail [email protected]

WEST OF THE RIVER CHAMBER OF COMMERCE
www.ourwrc.com
413-426-3880
• August 19: West of the River Chamber of Commerce 10th Annual Golf Tournament, Springfield Country Club, West Springfield. Cost: $125 per golfer. Presenting Sponsor: Hard Rock Hotel and Casino of New England. For more information on registration and sponsorship opportunities, call the chamber office at (413) 426-3880 or e-mail [email protected].
• Sept. 4: Wicked Wednesday, hosted By E.B’s, 5-7 p.m. Wicked Wednesdays are monthly social events hosted by various businesses and restaurants. These events bring members and non-members together to network in a laid-back atmosphere. Cost: free for chamber members, $10 for non-members (event is open to the public; you must pay at the door if you’re a non-member). For more information, call the chamber office at (413) 426-3880, or e-mail [email protected].

GREATER WESTFIELD CHAMBER OF COMMERCE
www.westfieldbiz.org
(413) 568-1618
• Sept. 11: September WestNet, 5-7 p.m., at the Holiday Inn Express, 39 Southampton Road, Westfield. Come and meet chamber members and bring your business cards for a great networking opportunity. Cost: $10 cash for chamber members, $15 cash for non-members. Walk-ins are welcome. Call the chamber at (413) 568-1618, or e-mail Pam Bussell at [email protected]. Your first WestNet is always free.

YOUNG PROFESSIONAL SOCIETY OF GREATER SPRINGFIELD
www.springfieldyps.com
• July 18: July Third Thursday, 5-7 p.m. at the Sheraton Springfield, 1 Monarch Place, Springfield. Cost: Free for members, $10 non-members.

Court Dockets Departments

The following is a compilation of recent lawsuits involving area businesses and organizations. These are strictly allegations that have yet to be proven in a court of law. Readers are advised to contact the parties listed, or the court, for more information concerning the individual claims.

CHICOPEE DISTRICT COURT
Trustees of the Yorktown Condominium Trust v. US Bank National Assoc. Trustee RASC 2007 EMX1
Allegation: Claim to enforce a condominium lien for non-payment of common charges and for order of foreclosure of lien for non-payment: $5,000
Filed: 6/11/13

GREENFIELD DISTRICT COURT
Edwin C. Gray and Daniel Gray v. Feed Commodities International Inc.
Allegation: Breach of contract and breach of implied warranty pertaining to the sale of bird feed resulting in damaged game birds and eggs, lost profits, and physical and emotional harm: $532,511.55
Filed: 5/31/13

Lane Construction Corp. v. Northern Land Clearing Inc.
Allegation: Non-payment of materials and services rendered and breach of contract: $59,573.90
Filed: 5/24/13

HAMPDEN SUPERIOR COURT
Donna Berry v. NiSource/Columbia Gas of MA
Allegation: Employment discrimination: $25,000+
Filed: 5/17/13

Joan and Robert Blakeslee v. Main Street America Assurance Co.
Allegation: Insurer has failed to pay for losses under insurance policy: $106,000
Filed: 5/29/13

The Dollfus Mieg Co. Inc. v. The JannLynn Corp.
Allegation: Non-payment of goods sold and delivered: $27,746.67
Filed: 5/17/13

HOLYOKE DISTRICT COURT
Specialized Bicycle Components Inc. v. Competitive Edge Ski & Bike Inc.
Allegation: Breach of contract and non-payment of goods sold and delivered: $14,014.43
Filed: 5/6/13

PALMER DISTRICT COURT
City Electric Supply Co. v. Steven Soby, d/b/a Soby Electric
Allegation: Non-payment of goods sold and delivered: $17,645.98
Filed: 4/17/13

SPRINGFIELD DISTRICT COURT
Adelphia Graphic Systems Inc. v. W.S. Sign Design Corp.
Allegation: Non-payment of goods sold and delivered: $9,939.56
Filed: 5/8/13

Maria Tirado v. SJA Real Estate Investing, LLC
Allegation: Negligent maintenance of property causing injury: $5,774.32
Filed: 6/10/13

Nurses on Demand, LLC v. The Northeast Health Group Inc. d/b/a Chapin Center, Governors Center, Willimansett Center East, and Willimansett Center West
Allegation: Failure to pay for nursing services provided by plaintiff: $24,419.13
Filed: 6/3/13

WESTFIELD DISTRICT COURT
Martin Topor Oil Co. Inc. d/b/a Central Oil v. W & I Construction Inc.
Allegation: Suit on an unsatisfied judgment: $13,660.03
Filed: 6/5/13

Cover Story
Summer Jobs Initiative Provides Much More Than Paychecks

CoverBW0713bRupert Daniel grew up in the projects in the Boston suburb of Roxbury.
Family life wasn’t working out very well, he recalled, adding that he used the ample amounts of free time he had to get into trouble. He eventually wound up in the first in a series of group homes, where he learned a lesson that would change his life — although he certainly didn’t know it at the time.
“In the group home, you got a weekly allowance of 50 cents, but if you did extra chores like helping to clean the house or the bathrooms, you got $5 a week. I said, ‘OK … if you work, you get money’ — I put that together,” he said, adding that this realization would later help compel him to become a participant in one of this region’s first summer jobs programs in the early ’70s.
And through the process of applying for and then getting work at Forest Park, Emerson Wright Park, and other locations, he learned everything from how to present himself at job interviews to why it’s important to show up every day, on time.
And he learned some other things as well.
“When you’re working like that, you’re around all kinds of people,” he explained. “On the streets, you have your peers, but when you came into the summer jobs program, you had college students, and people involved who were successful. And you ask, ‘what makes them successful?’

Rupert Daniel, now a Springfield Police lieutenant

Rupert Daniel, now a Springfield Police lieutenant, said getting a summer job was in many ways a life-changing experience.

“I came to realize that a lot of it was hard work and education, and as I started getting older, I said, ‘I have a choice — do I want to hang out with these knuckleheads that are still getting into trouble, or do I want to be like these guys?’” he continued, adding that he chose the latter. And he’s been given every job he’s applied for in a career that has included work in corrections, the military (two tours of duty in Iraq and two more in Afghanistan), and 27 years with the Springfield Police Department, which he currently serves as a lieutenant, spending countless hours trying to keep young people from landing in the kind of trouble that he did.
Scripting more stories like Daniel’s is not the official mission of the summer jobs initiative administered by the Regional Employment Board of Hampden County (REB), but it might as well be, said Bill Ward, the organization’s long-time executive director, who said that the jobs program is designed to introduce young people to the world of work and assist them with making some of those important decisions that Daniel made about life and his career.
“This is our future workforce, and if these kids don’t develop solid work habits early on, then when it’s time for them to go to work, they just don’t really have it,” said Ward, using that tiny word to represent the sum of what it takes to thrive in what most would call the ‘real world.’
And with that, he summoned the phrase ‘attachment to the workforce’ to describe the program’s essence — and what it provides to conscientious participants.
“From a big-picture perspective, we’re giving young people an opportunity to learn good work habits,” he explained. “We tell kids that the soft skills are the hard skills — and before long, they know what we’re talking about.”
Brianna Davis certainly knows. Now roughly three weeks into a job with the REB through the summer jobs initiative, she told BusinessWest that she handles filing, copying, reception-desk work, and other duties, for which she is paid $10 an hour. Perhaps more important than the paycheck, though (that’s perhaps), she said she’s getting her first experience working in an office and with other people.
“This is a lot quieter than what I’m used to,” she said with a laugh, adding that her most recent gainful employment has been waitressing. “It’s a lot more focused work — sitting down and completing one task at a time or multi-tasking and getting things done — and I’m learning every day.”
For this issue, BusinessWest takes an in-depth look at the REB’s summer jobs program and the many reasons why those who support it describe it as an investment in its participants — and in the region’s future.

In the Right Mold
Joe Peters says he virtually grew up in the company his father started in Chicopee, Universal Plastics, which he now serves as CEO. And one thing he’s always remembered has been the importance his father placed on summer jobs for young people.
“Every summer, he made it a point to make sure that we were definitely employed,” he said, referring to himself and his siblings, “and that even some of our friends were employed.
“His philosophy was that there were always these things that needed to get done and never got done during the year, and summer was a great time to do them,” he went on. “And to have young people doing those things was important to him; it gave those kids something to do, it gave them some spending money, it taught them how to work with others — it was great experience.”
And Peters has continued that tradition, putting his six children (and some of their friends) to work during the summer, while also, and especially in recent years, becoming a strong supporter of the REB’s initiative.

Mark Miller, president of U.S. Tsubaki Automotive LLC, with Tom Portenstein

Mark Miller, president of U.S. Tsubaki Automotive LLC, with Tom Portenstein, who is now spending his second summer working at the Chicopee plant.

When asked why he became involved, Peters referenced a recent report authored by Andrew Sum, director of the Center for Labor Market Studies at Northeastern University, whom he’s heard speak a number of times on the subject of the importance of employment opportunities for young people. He said Sum’s message has always been consistent — and strong.
“The statistics show that a kid who’s employed during the summer … his chances for success going into life are so much better, because that job becomes a foundation for what work is all about,” said Peters. “They learn how you deal with an employer, how you save a little money … the things you need to learn.”
Ward said the Sum study — subtitled “The Case for Increased Youth Workforce Development” — verifies the importance of creating job opportunities for young people, and especially those who are at risk, while offering some chilling statistics about how the numbers of such opportunities are going down when they need to go up. Among the main findings:
• “The labor market for teens in Massachusetts and the nation remains extraordinarily depressed,” Sum writes. “Last year [2012], only 27% of the teens ages 16-19 in our state were employed during an average month. This is the lowest teen employment rate in our state’s history over the past 45 years. Twice as many teens worked in 1999 as in 2012 (54% vs. 27%).
• “Despite job growth in our state and the nation over the past few years, teen employment has continued to decline,” he went on. “From 2010 to 2012, approximately 56,000 more working-age residents became employed in our state, while teen employment fell by 15,000. Across the nation, total employment increased by 5.05 million between the fourth quarter of 2009 and the first two months of 2013, while teen employment fell by 12,000 over the same time period.
• “While all demographic and schooling groups of teens have experienced steep drops in their employment rates over the past decade,” he went on, “the youngest teens, males, blacks and Hispanics, and high-school students, especially low-income students, have fared much worse.”
These statistics are verified by the fact that, for every individual who gets a job through the REB’s initiative, there are probably two others who are on the outside looking in, said Ward, adding that, when young people don’t have employment opportunities, they and the region as a whole both suffer. Young men and women don’t get a chance to learn some of the lessons Rupert Daniel did, and the region is impacted long-term when it comes to the quality of the workforce that will be in place years and decades down the road.
Realizing this, state officials, and especially Gov. Deval Patrick, have been aggressive in support of programs to employ young people, he went on, adding that the Commonwealth’s YouthWorks initiative pumps $10 million annually into creating summer employment opportunities, and the $1 million awarded to the REB will fund roughly half of the 1,000 jobs it hopes to create this summer.
Overall, public support will finance nearly two-thirds of the jobs created this summer, he went on, while breaking down the program’s many components.
Close to 500 jobs will eventually be funded by the YouthWorks program, he said, and offered through vendors that include the New England Farm Workers Council (NEFWC) in Springfield, CareerWorks in Holyoke, the Valley Opportunity Council in Chicopee, and Westfield public schools. Meanwhile, another 130 jobs will be funded by the federal Workforce Investment Act and created through a host of vendors, including the NEFWC, the New North Citizens Council in Springfield, the Greater Springfield YMCA, Pathfinder Regional Vocational Technical High School, and Holyoke public schools.
Another 100 jobs will be funded by other public initiatives, said Ward, while 35 will be generated through corporate-sponsored programs that involve the MassMutual IT Academy, Baystate Health, U.S. Tsubaki, and other companies, and another 285 will be created at other private-sector worksites through vendors CareerPoint and FutureWorks. (Companies can fund a position through a donation of $1,000 to the REB.)
The summer program targets youths from low-income families — there are income restrictions that must be met — and individuals who don’t have the skills and/or connections that are traditionally needed to secure employment, said Ward, adding that more than half the participants are African-American, and another 40% are Hispanic.

The Job at Hand
Tom Portenstein is back for his second summer of work at U.S. Tsubaki’s Automotive Division in Chicopee, where he handles a variety of office functions, including data entry and work with human-resources administrators.
A recent graduate of Sacred Heart University in Connecticut, where he majored in marketing and sport management, he said he wants to eventually work in sports, but for the moment is keeping his options open. He said his involvement in the summer jobs program has provided learning experiences on many levels.
“I’ve never worked in an office setting before, and this [opportunity] has shown what you have to do,” he said. “You have to be there every day, five days a week, ready to work; you have to be accountable.”
Over the years, U.S. Tsubaki has provided a number of similar opportunities — in its plants and at other locations — through monetary donations to the REB, said Mark Miller, president of U.S. Tsubaki Automotive LLC and a member of the agency’s board of directors. And like others, he describes that support as an investment in the region and its future workforce.
“The Springfield area is hurting from an economic-development standpoint,” he told BusinessWest, “and whatever we can do to bolster these kids, whether they stay in this region or go somewhere else, is worth doing. We can help keep them off the streets and help them to learn some work habits and discipline — things that will serve them well later on in life.
“If you talk to some of the kids who have been in the program for a couple of years, in some cases it’s been very effective in turning their lives around,” he went on. “For the ones who get the opportunity and then take full advantage it, it makes a difference to them.”
For Brianna Davis, the opportunity to work for the REB represents a chance to earn more than she would waitressing (she’s done that at a local 99 restaurant, and therefore knows that summer opportunities — and hours — are limited) and also gain what she considers more valuable experience as she continues pursuit of a career in journalism at UMass Amherst after recently graduating from Holyoke Community College.
“Through this experience, I’m learning how to work independently, but also in the group context,” she explained, noting, again, that this is a new dynamic for her. “I’m putting my communication skills to work, as well as my group and individual working skills, and I’m gaining confidence in my ability.”
Looking back more than 30 years, Daniel said he took away many of the same things from his experiences, and these are some of the points he drives home when he talks to young people about the importance of staying out of the trouble that often found him in his youth. The general message he leaves is that, to avoid trouble, youths need to stay busy, and this is a need he works to address in many ways, from a boxing program he coordinates to efforts to convince kids to seek out summer employment opportunities, such as those offered through the REB, and then do what’s required to get and keep a job.
“One of the things I like about being a police officer is that you can influence people positively — you can get in there and fix things, or try to fix things,” he explained, noting that he puts his work to encourage people to secure summer jobs in that category.
“I see a lot of kids with the same issues I had when I was a kid, and I’ll flash back and think about what helped me out, and summer work was at the top of that list,” he went on, adding that a few of his boxing charges are now in the REB or trying to get in, and he’s determined to see that they make the most of those opportunities. “I know what it did for me, and I’m going to stay on them and make sure they go to work, and hopefully things will work out for them.”
And while the young people involved in the summer jobs initiative obviously benefit, said Peters, the region and its business community do as well, and in ways that reinforce the notion that support of the jobs program is an investment that will pay dividends.
“It’s good for our future, because we’re going to need employees five years from now, 10 years from now, and 20 years from now,” he told BusinessWest. “And if we don’t get them on the right track, we’re the ones that are going to pay a price down the road.”

Check, Please
Summing up the summer jobs initiative, Ward said there are a number of immediate benefits from the public and private funding of these employment opportunities.
“There’s a huge economic impact — young people now have disposable income, and they use it to buy things for school and for home; that money goes right into the economy.”
But the more significant rewards will come years down the road, he went on, when the region’s employers, and society in general, will benefit from having thousands of young people gain work-readiness skills as well as a greater understanding of what it takes to succeed in the workplace — and in life.
That’s a lesson Rupert Daniel learned while on his first summer job back in the ’70s, and something he’s committed his time and energy to helping others learn ever since. He discovered as a child that work puts money in your pocket — but it also does so much more.
And that’s why he, Ward, Peters, and others say the investments in summer jobs must continue.

George O’Brien can be reached at [email protected]

Opinion
The Power of Summer Jobs

Rupert Daniel will tell anyone who will listen — and he’s committed a good deal of time and energy to the task of compelling people to listen — that a few summer jobs changed his life.
Relating the story (see page 6), he said that he was in trouble early and often in his youth, and was certainly headed in the wrong direction, when he landed a summer job through a federally funded program back in the ’70s. He acknowledged that his primary mission was to make a little walking-around money, but he came away with much more.
As he told BusinessWest, in the course of working at a few parks in Springfield, he came into contact with individuals who gave him something to think about — or something else, as the case may be. These were college students or people who had used their college educations to earn good-paying and highly rewarding jobs. Rupert said he soon realized that he had a choice to make: stay on the course he was on (the one that landed him in trouble and a series of foster homes) or attempt to emulate the successful people he met during the summer.
He chose the latter, and eventually embarked on a career that would include tours of duty as a Green Beret and work with the Springfield Police Department, which he now serves as a lieutenant.
Not everyone who lands a summer job would describe the experience as life-changing, certainly, but most would describe it as a positive development, from which they gained much more than a small paycheck. They would say they also learned lessons in responsibility, teamwork, communication, accountability, and how to function in the workplace — be it at an office, a Friendly’s restaurant, a tobacco field, or Riverside Park (now Six Flags).
And this is why the summer jobs program conducted by the Regional Employment Board of Hampden County, and others like it, are so important. Publicly and privately funded (more the former than the latter), these programs provide opportunities to people who might not otherwise be able to experience what Rupert and countless others have over the years.
That’s the good news. The bad news, as related by the REB’s long-time director, Bill Ward, is that, for every 1,000 people who land a job through his program (and that’s the annual goal), probably twice that many are left on the outside looking in, and missing out on an experience that could shape a life in the way that Rupert’s was.
This statistical dilemma is verified in a report conducted recently by the Center for Labor Market Studies at Northeastern University. It revealed that roughly half as many teens ages 16-19 (27%) in this state were employed during an average month in 2012 as there were in 1999 — and there is little to suggest that improvement is in the offing.
And if things don’t improve, thousands of young people will suffer the consequences, and so will the region as a whole.
Indeed, today’s teens are tomorrow’s workforce, and the quality of that workforce will go a long way toward determining future growth and economic vibrancy in cities like Springfield, Holyoke, Chicopee, and Westfield.
The state’s elected leaders, and especially Gov. Deval Patrick, have stepped up to the plate on the summer jobs issue, pumping $10 million annually into the YouthWorks initiative, and federal funding has also been steady. These efforts must continue and expand, and area employers must pitch in as well to help increase the number of young people who can earn a paycheck in the summers to come.
Such jobs are not necessarily going to change a life — although one did for Rupert Daniel — but they will help change the equation for generations of young people and the Pioneer Valley as a whole.

Features
Impacts of the Supreme Court’s Decision are Wide-ranging

By KATHRYN von SCHOELER, Esq., CARLA NEWTON, Esq., and MICHAEL SIMOLO, Esq.
On June 16, the U.S. Supreme Court issued a 5-4 decision in the case of Windsor v. United States holding that Section 3 of the Defense of Marriage Act (DOMA), enacted by Congress and signed by President Clinton in September 1996, was unconstitutional. In essence, the court held that Section 3, which provided the federal definition of marriage as a union between a man and a woman, deprived same-sex couples of equal liberty.
As a result, for all federal purposes, same-sex marriages are to be treated in the same manner as heterosexual marriages.
Massachusetts, of course, was the vanguard in the same-sex-marriage arena in 2004, when its own Supreme Judicial Court held in Goodridge v. Department of Public Health that it was unconstitutional (referring to the Massachusetts constitution) to allow only heterosexual couples to marry. Notwithstanding that decision, however, no same-sex couple married in Massachusetts (or in any other state that allows same-sex marriage) enjoyed the federally created benefits (and burdens) of marriage. In essence, such couples were married for state purposes, but not for federal purposes.
With the Supreme Court’s historic Windsor decision, however, all same-sex couples legally married under state law will be treated as legally married under federal law. The consequences of this ruling range from the truly historic to the mundane, but they are all important, and they will all have an impact well beyond the same-sex couples directly affected. This article will explore, on a basic level, some of those consequences for both individuals and businesses.

Business Considerations
The Windsor case raises several issues for employers and employees:
• Couples in federally recognized same-sex marriages may now file joint tax returns. As a result, affected employees may want to consider amending their IRS Form W-4 so that their employers can withhold the correct federal income tax from their pay;
• Employees who were previously precluded from including their same-sex spouse from their health plan may now add their federally recognized spouses and their stepchildren;
• Employers who already offered health benefits to same-sex spouses, but were required to treat the value of that benefit as taxable income to their employee, are no longer required to do so, which will reduce both the record-keeping and overall tax burdens of both employer and employee;
• Employers who previously ‘grossed up’ the affected employees’ pay to compensate for the taxed health benefit will no longer need to do so to achieve net pay equity for employees in same-sex marriages;
• Employees who have access to flexible spending accounts may now use the accounts to cover the expenses of their same-sex spouse and step-children;
• Individuals in same-sex marriages will now be entitled to survivor benefits from a federally recognized spouse’s pension or other tax qualified plan;
• Employees in federally recognized same-sex marriages who work for employers subject to the Family and Medical Leave Act (FMLA) will be entitled to the benefits of the act to care for a federally recognized same-sex spouse, and employers who had created FMLA-like policies for their employees in same-sex marriages may now abandon those policies; and
• The immigration status of individuals in federally recognized same-sex marriages will change, and in many cases, this will eliminate administrative burdens on the immigrant employee and his or her employer.

Changes for Individuals
The Windsor case involved an estate-tax dispute, and the court’s decision brings about numerous changes in the estate-planning and individual income-tax realms. Initially, it is important to note that, because Section 3 of DOMA has been ruled unconstitutional, it is deemed void from its inception. As a result, same-sex married couples may want to amend earlier tax returns as discussed below.
Those amendments may be curtailed, however, by applicable statutes of limitation. These limitations issues do add some urgency to considerations of amending previously filed returns. The changes now in effect include the following:
• Married same-sex couples now enjoy the unlimited marital deduction for both gift- and estate-tax planning. As such, all sums gifted during life, or bequeathed at death, by one spouse to the other will pass gift- and estate-tax free. It should be possible to amend previous estate- and gift-tax returns to obtain these benefits, subject to the applicable statute of limitations.
• Married same-sex couples may now ‘gift split’ during life to third parties for gift-tax purposes.
• Married same-sex couples may now enjoy the so-called ‘spousal rollover’ for certain retirement and IRA plans. This provides more tax advantages than previously available to same-sex couples. Also, married same-sex couples will now be automatically entitled to the survivor benefits of certain of their spouse’s retirement accounts absent a signed waiver.
• Married same-sex spouses may now enjoy ‘portability’ for estate-tax purposes — that is, the use of their deceased spouse’s unused estate-tax exemption, even absent the use of a so-called ‘shelter trust.’
• Most obviously, married same-sex couples now have the ability to file joint federal income-tax returns, as well as to amend previously filed separate income-tax returns, subject to limitations issues. Note that, for certain high- and low-income couples, the elimination of the ability to file as a single individual may actually result in a tax increase.
• Married same-sex couples will now be entitled to spousal and survivor Social Security benefits.
Inevitably, any law that impacts marriage will also have some impact on both marriage planning and divorce. While divorce is a matter of state law, DOMA had the effect of both limiting the options available when couples divorced and imposing tax burdens not suffered by heterosexual couples.
Options now available for prenuptial planning or for divorcing couples include:
• Spousal support (alimony) and unallocated family support will be recognized and treated as taxable to the recipient and deductible by the payor.
• Retirement benefits can be assigned and transferred by a qualified domestic-relations order without creating a taxable event.
• Marital assets can be assigned to either spouse at the time of divorce without creating a taxable event.
• Spouses will enjoy greater options for coverage of health benefits at time of divorce.
• Parties to marriages which exceed 10 years will qualify for spousal Social Security benefits after divorce under the same criteria as have been in place for heterosexual married couples.
Numerous questions remain on several issues relating to DOMA, including tax issues for previously divorced same-sex couples (impacting alimony and ‘basis’ for capital-gains purposes in certain transferred property). The exact resolution of some of these questions will play out over time as the IRS and related entities issue guidance on them.
It is clear, however, that the impact of this ruling will be wide-ranging, both on employers and individuals, and that care must be taken in exploring, understanding, and implementing the changes that the Windsor case has brought about.

Kathryn von Schoeler is an attorney with Robinson Donovan, P.C., specializing in employment law; (413) 732-2301. Carla Newton is an attorney with Robinson Donovan, P.C., specializing in employment law; (413) 732-2301. Michael Simolo is an attorney with Robinson Donovan, P.C., specializing in estate planning, estate and trust administration, business law, and fiduciary litigation; (413) 732-2301.

Banking and Financial Services Sections
Is a Powerful Storm on the Horizon in Western Massachusetts?

“It is said,” Ralph Waldo Emerson noted, “that the world is in a state of bankruptcy, that the world owes the world more than the world can pay.”
Like many other areas of law, bankruptcy unfortunately rides the ebb and flow of politics. History demonstrates that bankruptcy-law expansion and contraction is often based on societal factors and perceptions, including economic growth or recession, employment rates, interest rates, and — maybe most importantly — the public perception of bankruptcy effectiveness.
As the U.S. Constitution leaves bankruptcy regulation squarely in the hands of Congress, this power has been exercised several times. One of the most significant revisions was the implementation of the Bankruptcy Reform Act of 1978, which created the modern day Bankruptcy Code and set the foundation for the bankruptcy system we use today.
To promote efficiency and protect the integrity of the federal bankruptcy system, the act established the U.S. Trustee Program as a component of the Department of Justice to monitor the conduct of bankruptcy parties and generally act to ensure compliance with applicable laws and procedures. The U.S. trustee also identifies and helps investigate bankruptcy fraud and abuse in coordination with U.S. attorneys, the Federal Bureau of Investigation, and other law-enforcement agencies. Essentially, the primary role of the U.S. trustee is to serve as the watchdog over the bankruptcy process. As stated in the their mission statement, “the mission of the United States Trustee Program is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors, and the public.”
The inherent premise of bankruptcy is the creation of a system that gives good, honest, hardworking people a fresh start. Over time, the bankruptcy system became an effective way for many Americans facing extreme financial hardship to discharge significant debt. In fact, in the early ’80s, annual consumer filings hovered around 300,000. However, by 2004, the number of filers had skyrocketed to 1.5 million. These increasing numbers became a great concern to the lending community, which was forced to write off ever-increasing amounts of discharged debt.
Interested in examining the reasons behind the increasing number of bankruptcy filers, Congress formed the bipartisan, nine-member National Bankruptcy Review Commission in 1994. When Congress created the commission, it did not feel consumers were abusing the bankruptcy system, or that the code needed to be restructured to respond to increased credit-card use; rather, the commission’s work was more investigative, as it was charged with “reviewing, improving, and updating the code in ways which do not disturb the fundamental tenets and balance of current law.” Following an exhaustive three-year investigation, and despite enormous lobbying pressure from the credit-card industry, in 1997 the commission produced a voluminous, 2,000-page report that ultimately rejected any significant changes to the bankruptcy system.
Unfortunately, a minority number of committee members were fundamentally unsatisfied with the conclusion of the committee’s findings, and wrote dissents because they felt the installation of credit counseling and a ‘means test’ were warranted to limit Chapter 7 bankruptcy only to those who could prove they lacked the ability to repay their debts. Specifically, four dissenting members sought significant change in the bankruptcy laws because they perceived a societal harm was occurring. They believed society no longer perceived bankruptcy as morally offensive and, as such, bankruptcy was now being used an easy first resort (instead of the intended last resort) that allowed someone to walk away from their debt responsibility without significant consequence.

Under Attack
As some members of the lending industry were upset that the commission report failed to recommend restricting bankruptcy eligibility, a few lenders instead attacked the majority’s conclusions in the report as being incorrect, and went further by extracting and using the dissenting commission members’ comments to target Congress and justify the need for significant change in the bankruptcy system. Over the next eight years, spurred on by banking-industry lobbyists, Congress worked on and revised various versions of a new bankruptcy law that focused primarily on reshaping Chapter 7 bankruptcy.
Citing questionable data that had been presented to the committee, the House reports show that Congressional supporters came to believe that liberal bankruptcy laws were filled with loopholes that encouraged abuse, and this in turn increased credit costs for all Americans. The lender lobbyists claimed that the current bankruptcy laws imposed an annual $300-$500 surcharge on all responsible Americans who did not file bankruptcy, and as such, the rest of us were the ones ultimately responsible for paying debts discharged in bankruptcy. Successful lobbying convinced some in Congress to think of bankruptcy as basically another governmental benefit (like food stamps), as opposed to its prior status as a right.
This shift in thinking was significant. Instead of a person filing bankruptcy and obtaining the right to a fresh start, someone in financial distress must now first prove they are deserving of bankruptcy protection before becoming eligible for a fresh start in bankruptcy.
In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which in turn was signed into law by President Bush. Although there are many parts to the law that affect both individuals and businesses, the primary thrust of BAPCPA was to cut down on abusive or fraudulent filers in the bankruptcy system. As Congressman F. James Sensenbrenner Jr. (R-Wis), one of the bill’s key supporters in the House, argued, “this bill will help restore responsibility and integrity to the bankruptcy system by cracking down on fraudulent, abusive, and opportunistic bankruptcy claims.” This was accomplished by the law primarily doing three things:
• BAPCPA created a new, complex, mostly mathematical analysis known as the ‘means test’ to determine Chapter 7 bankruptcy eligibility and abuse. This task had previously belonged to bankruptcy judges; however, it appears Congress felt bankruptcy judges were either unable or unwilling to perform this duty, and thus Congress removed this subjective component. BAPCPA instead created a largely automated and mechanized formula to determine abuse. If the means test demonstrates that a Chapter 7 bankruptcy filing is ‘abusive,’ the bankruptcy case is either dismissed (meaning the debtor is put back in the same debilitating financial position they were in before they filed bankruptcy), or they might instead be able to convert to a Chapter 13 bankruptcy. Known as a reorganization, a Chapter 13 is designed to create a long-term repayment plan for debtors (often running three to five years) in which the debtors repay some or all of their obligations. In addition to often being two to three times more expensive to hire a lawyer to do a Chapter 13 bankruptcy, the monthly payment and extended time commitment make the process untenable for most Chapter 13 debtors.
• The new law required all debtors to take two classes as part of the bankruptcy process. First, unless a debtor meets a very narrow group of exceptions, a pre-filing credit-counseling class must now be taken within 180 days before filing bankruptcy. The class is designed to require the debtor to review the opportunities for available credit counseling and assist them in performing a related budget analysis. After filing bankruptcy (and before the debtor can receive a discharge and finish the case), the debtor must also take a financial-management education class to help him or her understand budgeting and other financial basics with the hope that this information may reduce the need to file bankruptcy in the future.
Again, the message Congress sent with these changes was that it lacked confidence in the bankruptcy process. Specifically, it become apparent that Congress felt lawyers were doing an inadequate job counseling their clients about their bankruptcy and non-bankruptcy options, and lawyers were perhaps instead pushing people who really didn’t need to file bankruptcy into bankruptcy simply to earn a legal fee.
• Finally, the law sought to stop repeat bankruptcy filers by extending the time of eligibility between bankruptcy discharges from six years to eight years. Apparently, judges, the U.S. trustee, and lawyers were not able to prevent what Congress deemed ‘abusive repeat filers,’ so Congress decided to again take charge and simply extend the time for which repeat filing is a possibility for everyone.
The theoretical justification behind BAPCPA is that it would first inhibit and reduce bankruptcy filings; in turn, bankruptcy-related losses to lenders would be drastically reduced. Those lenders would then pass on the savings to the rest of us in the form of lower interest rates. Although this theory was unproven at the time of passage, it was known that BAPCPA would make bankruptcy harder to file and more expensive, and would automatically carve out a group of people who would now be ineligible for Chapter 7 relief.

The Results, Eight Years Later
After the passage of BAPCPA, did bankruptcy filing rates significantly decline? Yes and no. Although BAPCPA was signed into law on April 20, 2005, most of the law did not become effective until Oct. 17, 2005. The number of bankruptcy filings took a significant drop after BAPCPA’s effective date. Although this may seem to justify the need and effectiveness of BAPCA, a broader perspective is important.
In actuality, because of the six-month grace period, the publicity surrounding the law’s existence, and a general fear by those in financial crisis over whether or not they would remain eligible for bankruptcy protection after Oct. 17, large numbers of people who had considered bankruptcy even very briefly went ahead and filed for bankruptcy prior to the Oct. 17 deadline. Although the filing numbers plummeted to 600,000 the year after BAPCPA, it is important to note that the signing of the law caused filings to skyrocket to more than 2 million in 2005. As such, the numbers of filings after BAPCPA were negatively skewed, thus also skewing the perceived effectiveness of the law. Furthermore, since 2006, the filing numbers have generally trended upward, and are again at approximately pre-BAPCPA levels.
If the objective of BABPCA was to produce a long-term reduction in consumer filings based on implementation of a means test, credit counseling, and limiting repeat filers, Congress failed. In addition, it is interesting to note that, during the period where bankruptcy filing rates significantly fell following enactment of BAPCPA, despite Congress’s hypothesis, there is no evidence that the lending industry lowered interest rates on credit cards and other loans. Although theoretically saving hundreds of millions of dollars due to significantly fewer discharged debts, it appears some in the lending industry actually increased credit-card fees.
There is also evidence that BAPCPA failed to adequately encourage consumers to utilize debt more cautiously. In fact, during the first year that BAPCPA was in effect, revolving debt per household rose by 5.3% — higher than the rate of increase during any of the previous five years.

A Surge in Bankruptcy Filings?
Although BAPCPA seems to have failed in its primary objectives, experts are pondering the effect of its eight-year anniversary. Specifically, as that anniversary will occur this October, will there be a flood of new bankruptcy filings, as the enormous number of people who filed bankruptcy in 2005 will now be eligible to re-file?
As the economy has continued to struggle, and many people have not been able to financially rebound since their last bankruptcy filing due to the ongoing recession, lawyers in Western Mass. are preparing for a possible rush of large numbers of people needing bankruptcy assistance who will again become eligible to file bankruptcy this October.
In addition to lawyers, it also important that local banks and lenders be prepared to deal with a possible increase in bankruptcy notices. From a lender’s perspective, in anticipation of a possible filing spike, it would be prudent to have legal counsel review proper bankruptcy-notice protocol with loan and collection officers. Generally speaking, communications regarding a debt (both verbal and written) from the lender to a debtor in bankruptcy could be deemed a violation of the automatic stay, and expose the lender to sanctions.
Only time will tell if we will soon experience a spike in bankruptcy filings. As with most things in life, the best offense may be a strong defense — prepare for the worst and hope for the best.

Attorney Justin Dion is a professor at Bay Path College in Longmeadow, where he teaches in the Legal Studies Department, and is director of the Bay Path College Pro Bono Bankruptcy Clinic. He is also associated with the firm Bacon Wilson, P.C., in Springfield, and practices bankruptcy law; [email protected]

Banking and Financial Services Sections
How to Appropriately Account for Incurred Business Expenses

Jennifer Reynolds

Jennifer Reynolds

As a business owner, have you ever asked yourself, ‘am I accounting for employee-incurred business expenses appropriately?’ The answer, as always, is … it depends.

Accountable Versus Non-accountable Plans
Please don’t stop reading; these are really just technical terms for something rather non-technical. When a business owner reimburses an employee for expenses incurred during the normal course of business, as an employee, how that owner reimburses the employee determines the tax implications to both the employer and employee.
Under an ‘accountable plan,’ if the employee substantiates his or her expenses incurred (i.e. provides receipts to the employer), the employer can reimburse the employee for those expenses. This reimbursement is not considered taxable income to the employee, nor will the employer be required to withhold federal, state, or FICA taxes on the reimbursed amount.
Alternatively, under a ‘non-accountable plan,’ if an employer reimburses an employee without requiring the employee to substantiate expenses (i.e. no receipts or other documents submitted to the employer to confirm the expense), the payment to the employee becomes taxable income to the employee and is further subject to payroll taxes to both the employer and employee, and is also subject to federal and state income tax withholding to the employee.

Criteria for an Accountable Plan
For a company plan to be accountable, your company’s employees must satisfy three requirements. They must have:
• Paid for or incurred deductible expenses while performing services as an employee of your company;
• Adequately accounted to the company for the aforementioned expenses within a reasonable period of time; and
• Returned any excess reimbursement or allowance within a reasonable period of time back to the employer.
To adequately account for the employee’s expenses under the second requirement, employees must provide the company with substantiation of his or her travel, mileage, or other employee business expenses. For example, the employee must supply receipts and a statement of expense, account book, or similar record where the employee entered each expense at or near the time it was incurred in order to meet the contemporaneous requirement. Special rules apply to ‘per-diem’ reimbursements and are discussed later.
For the third requirement, an excess reimbursement or allowance is any amount a company pays an employee in excess of the actual business-related expenses for which he or she has adequately accounted. For example, if your company’s plan advances money to employees, the third requirement will be met only if the advance is reasonably calculated not to exceed the amount of anticipated expenses and the company policy requires the employee return the excess advance within a reasonable period of time.
The IRS has recognized that a ‘reasonable period of time’ depends on facts and circumstances. The following time frames were deemed to have taken place within a ‘reasonable period of time’ for guidance:
• The company advances to an employee within 30 days of the date the employee incurs the expense;
• The employee adequately accounts for his or her expenses within 60 days after the expenses were paid or incurred; and
• The employee returns any excess reimbursement within 120 days after expenses were paid or incurred.
As an alternative, many companies have abandoned the practice of expense allowances and implemented a reimbursement policy, whereby employers reimburse the employees weekly or monthly for out-of-pocket expenses incurred on the company’s behalf rather than tracking advances against actual expenses and reconciling any differences. To receive reimbursement, the employees must submit expense reports with attached receipts and adequate documentation to support a contemporaneous reimbursement.
What if an employer maintains an accountable plan but the reimbursement excess isn’t returned? What happens if an employer maintains an accountable plan that requires the return of excess advances, but the excess isn’t returned by the employee? If an adequate accounting is made to comply with all criteria of an accountable plan except the excess isn’t returned by the employee, then the employer must report the excess amount as wages.
However, if the IRS concludes that an employer’s reimbursement or other expense-allowance arrangement evidences a pattern of abuse of the rules and regulations, all payments made under the arrangement will be treated as made under a non-accountable plan, and the entire payment to the employee (both substantiated and excess) will be included the employee’s gross income, and will be reported as wages and subject to withholding and employment taxes.

Travel and Mileage Rules
A reimbursement arrangement that pays employees a fixed ‘per-diem’ amount for hotel, meals, and incidentals or a mileage-based amount (for business use of the employee’s vehicle) requires neither substantiation of actual amounts spent or the return of reimbursement in excess of the employee’s actual expense.
The IRS has issued tables defining maximum allowed per-diem rates for employers to treat per-diem or mileage-reimbursement plans as accountable plans, provided the amount paid is equal to or less than the maximum allowable rate.
Even if the employer’s reimbursement rates do not exceed the IRS rates, the employee still needs to substantiate time, place, business purpose, and mileage amounts (for mileage reimbursements) in order to comply with an accountable plan and to be excluded the reimbursement from wages, employment, and withholding taxes.
The tax rules relating to accountable plans can be complex, so addressing them now will avoid year-end payroll problems. This article is intended to provide general information regarding accountable plans. As always, you should consult your tax or legal advisor before applying it to your specific business situation.

Jennifer Reynolds is a tax manager with the Holyoke-based certified public accounting firm Meyers Brothers Kalicka, P.C.; (413) 322-3542; jreynolds@mbkcpa

Columns Sections
Wage Suit Against Lady Gaga is Litigation of Note

Karina L. Schrengohst

Karina L. Schrengohst

The lawsuit brought against Lady Gaga by her former personal assistant (PA) illustrates some of the wage-and-hour law challenges that employers face.
Lady Gaga hired a friend to be her personal assistant at an annual salary of $75,000. After the two had a falling out, Lady Gaga’s former PA filed a lawsuit alleging that she is owed almost $400,000 in unpaid overtime under the Fair Labor Standards Act (FLSA) and state law. The PA claims she worked 24/7, around the clock. According to the PA, her job duties included reviewing and reconciling credit card statements, ordering meals, heating Lady Gaga’s food, ensuring the promptness of a towel after a shower, serving as a personal alarm clock to keep Lady Gaga on schedule, packing and unpacking Lady Gaga’s 20 bags of luggage, and sleeping in Lady Gaga’s bed with her so that she would be able to attend to all her needs.
Under the FLSA, employees are entitled to overtime unless they fit within specific overtime exemption categories. For a personal assistant, the most likely exemption is the administrative exemption. In order to fit within this exemption, Lady Gaga would have to show that her former PA was paid on a salary basis of at least $455 per week, that her primary job duty included performing office or non-manual work, and that she exercised discretion and independent judgment. In this case, the job duties the PA described do not require the requisite level of discretion and independent judgment sufficient to meet the administrative exemption. Therefore, assuming her description of her job duties is accurate, she would be entitled to overtime for the hours she worked over 40 in a workweek.
But exactly how many hours of overtime did the PA work? According to the PA, she was not compensated for 7,168 hours. But no one kept track of her hours, which, in the case of a non-exempt employee, is an employer’s responsibility.
Also, the PA claims that even during her time off during the day she was required to carry her cell phone in case Lady Gaga needed something. Consequently, according to the PA, she was limited in her ability to engage in personal activities. Therefore, as a non-exempt employee, she likely would be entitled to be paid during some of this on-call time. Similarly, if the PA really had to sleep in Lady Gaga’s bed to attend to any needs that might arise, that time during the night would likely be compensable as well.
During her deposition, Lady Gaga stated that her former PA knew that she would be paid $75,000 for working 24/7 and that she knew that she was not entitled to overtime. Further, recounting some of the perks of the job, Lady Gaga stated that her PA “slept in Egyptian cotton sheets every night, in five-star hotels, on private planes, eating caviar, partying . . . all night, wearing my clothes.” However, knowing she was expected to work 24/7 and enjoying these perks does not overcome the fact that, based on the PA’s description of her job duties, the PA was a non-exempt employee, entitled to overtime pay and on-call time pay.
State and federal laws pertaining to wage-and -hour issues, such as overtime, are complicated. As a result, these are areas where mistakes are often made. Employers, however, cannot afford these errors because the consequence of not complying with these laws can be very costly. In fact, in Massachusetts, there are mandatory treble (triple) damages for unpaid wages. This means that if an employer is found in violation of state law, at a minimum, for every dollar an employer does not pay in accordance with wage-and-hour laws, that employer will have to pay three times that amount. In Lady Gaga’s case (if the case was brought in Massachusetts, which it was not) if the court found that her PA was owed $400,000 in unpaid overtime, Lady Gaga would have to pay $1.2 million. In addition, Lady Gaga would have to pay her former PA’s attorneys’ fees and costs of the litigation. Thus, in order to reduce the risk of liability, employers should consult with their employment counsel and familiarize themselves with state and federal wage-and-hour laws to ensure compliance.
As a side note, Lady Gaga’s legal battle also illustrates the importance of an employer maintaining her poker face during deposition. During her deposition, under oath, Lady Gaga called her former PA a “f—ing hood rat who is suing me for money she didn’t earn.” She also stated “I’m the queen of the universe every day.” And she said to her former PA “I’m quite wonderful to everybody that works for me, and I am completely aghast to what a disgusting human being that you have become to sue me like this.”
These colorful comments will likely be quoted by the PA’s attorneys in briefs submitted to the court. Although an extreme example, it illustrates how damaging emotionally driven testimony can be.

Karina L. Schrengohst, Esq. is an attorney at Royal LLP, a woman-owned, SOMWBA-certified, boutique, management-side labor and employment law firm; (413) 586-2288; [email protected].

Company Notebook Departments

VizConnect Opens Headquarters in Springfield
SPRINGFIELD —  Mobile marketing technology and communications firm VizConnect Inc. recently announced the opening of its headquarters in Springfield, and the official launch of its North American operations. Recently named one of the five top technology start-ups to watch by the Boston Business Journal (June 4, 2013), VizConnect was founded in 2011 by a team of partners, including 20-year media veteran and Associated Press and Emmy award winning on-air personality Edward Carroll. VizConnect is a video-management service that will allow businesses of all sizes to easily incorporate high-definition video into print advertising and their existing social media. Businesses of all size can use VizConnect’s platform to easily leverage the power of video and a call-to-action screen to market their products and services while also interacting and engaging their target customers. “We’re thrilled to call Springfield our home,” said Carroll of the decision to keep the business in Western Mass. “We could have launched this effort from Cambridge or even Los Angeles, but it’s important to us to be part of building this community that has been so instrumental in our development.” The team of founding partners includes Paul Cooleen, president of VizConnect, a former bond trader with deep ties to Wall Street; Jim Henderson, chief information officer, chief counsel and Boston-based attorney; and Brian Dee, director of Business Development. With subscribers located around the country, VizConnect currently serves a diverse group of businesses in a wide variety of industries, including real estate, restaurants, automobile sales, sports franchises and general contracting vendors. VizConnect also counts several non-profit organizations as customers. VizConnect’s online tools are sold through a network marketing structure, further offering immense opportunities to business people interested in building their own companies. The company offers its distributors — independent business associates — an opportunity to sell and distribute this web-based program as the foundation for their own independent businesses.

Big Y Debuts Solar Array
SPRINGFIELD — Big Y Foods Inc. recently announced the completion of its new solar array at 151 Cottage St. at its Store Support Center in Springfield. This new array spreads across three acres and includes 2,178 solar panels with a 643kw DC array. Annual electrical production yield is expected to be 750,000 kilowatt hours, which will offset the company’s electrical consumption by 15% or 1 ½ months at Big Y’s corporate offices and distribution center. Real Goods Solar Energy, Western Mass Electric Company, and local contractors such as Cotton Tree Service and L&D Construction, installed the panels over the past five months. Employees and visitors can view the array’s electrical generation via a monitor in the company’s café. It is Big Y’s third solar installation in Massachusetts; at the Big Y World Class Markets in Lee and Franklin, rooftop solar arrays have been helping to offset electrical consumption since June 2012. An opening event was staged June 27 at Big Y’s headquarters, at which state and local representatives helped inaugurate the new panels. State Secretary of Energy and Environmental Affairs Richard Sullivan, Springfield Mayor Domenic Sarno, Center for Eco-Technology executive director John Majercak and their Green Business Services director Lorenzo Macaluso shared the podium in recognition of Big Y. The company has long been recognized as a leader in innovative energy efficiency and renewable energy technologies. In collaboration with the Center for EcoTechnology (CET), a non-profit environmental organization that helps businesses improve environmental performance, Big Y began diverting food waste from landfills across the state. It began diverting food waste from disposal in the mid 1990s and today, all 61 stores recycle cardboard, paper and film plastics. More than 80% of its Massachusetts markets utilize active composting programs. In 2011, Big Y diverted more than 16,000 tons of materials from landfills. Last year, Big Y was recognized by the state for its significant accomplishments. In addition, it passed the 80% certification rate statewide to earn regulatory relief from the MassDEP Waste Ban Enforcement and earned Supermarket Recycling Program Certification. Big Y is also an inaugural participant in EPA’s Food Recovery Challenge. Other renewable-energy solutions implemented by Big Y include full building- management systems in each store to control lighting, refrigeration, and other HVAC units to insure optimal performance. This system also reduces lighting and temperatures at nighttime when the stores are closed. Other initiatives include the installation of glass doors in all dairy and frozen food cases along with electronically commutated motors to lower energy consumption. Variable speed drives on rooftop air handling units and cooking exhaust hoods, advanced refrigeration systems with reduced refrigerant charges, rooftop dehumidification units, and highly energy efficient case motors all contribute to reducing Big Y’s energy footprint. Additionally, LED lighting with occupancy sensors, pull down covers for open multideck cases and efficient lighting design continue to help the chain save over 800,000 kwh per year in energy consumption. Before the installation of their new solar array, these savings are equivalent to 1283 barrels of oil, 61,844 gallons of gasoline or 108 cars being taken off of the road. Big Y is also one of the first retailers to install electric-car-charging stations, which are currently active at four of their Massachusetts  locations — Northampton, Lee, Franklin, and Walpole.  Customers can conveniently use the chargers for free while they shop. Since installation, 482 cars have charged more than 461 hours saving more than 1,879 (kg) of greenhouse  gases and 223 gallons of gasoline. According to Gary Kuchyt, Big Y’s manager of energy and sustainability, “Saving resources is important to us as a company — not only is it good business, but it’s simply the right thing to do. I am proud to say that Big Y has been committed to conserving energy and reducing waste for over 40 years.”

ESB to Receive ‘Employer Support of the Guard and Reserve’ Award
EASTHAMPTON —  Easthampton Savings Bank announced that on July 9, it will receive the ‘Employer Support of the Guard and Reserve” award. The presentation will take place at the bank’s main office at 36 Main St. in Easthampton. The nomination was made by Darci Furr, assistant manager at the bank’s Westfield Office. Furr is a master sergeant in the Mass. Air National Guard, and has been deployed to Saudi Arabia from 2001 to 2002, and to Qatar in 2005 and 2010. Furr, whose current unit of assignment is the Force Support Squadron, 104th Fighter Wing, Barnes Air National Guard Base in Westfield, has served for 15 years. In her nomination Furr called Easthampton Savings Bank a “pillar of the Pioneer Valley business community, that is fully deserving of recognition due to exceptional support of military service members.” She talked about the Veteran’s Day drives that the bank has done for the past six years to collect items from employees to send to a military unit who has a member with a direct relationship to the bank. Furr also talked about her personal experience with the bank’s support of military service members. She commented that during the entire 15 years as an employee of ESB and as a member of the Massachusetts Air National Guard her managers have been very accommodating to her military duty needs; including last-minute scheduling changes, extended temporary duty periods, and monthly drill weekends.  In addition, the bank voluntarily provides a pay differential for service members whose military salaries are less than that of their bank income. Furr also commented that her direct supervisor also took the time to keep in touch with Furr’s husband, who remained state side. She also added that the bank’s culture is a direct reflection of the leadership and caring guidance of Bill Hogan, the long-time president and CEO of ESB; a former Guardsman himself. Furr concluded her nomination by saying “ESB is a model employer in many ways, not the least of which is its exceptional support of military service members. Selection for the Above and Beyond Award would recognize ESB publicly for something I have known for my 15 years of employment there.”

Polish National Credit Union pledges $50,000 for new Chicopee Senior Center
CHICOPEE — In a check presentation ceremony recently at The Polish National Credit Union’s Main Street, Chicopee headquarters, PNCU pledged the second of two $25,000 donations to support the construction of the new Chicopee Senior Center on Main Street. PNCU previously donated $25,000 in 2012 for the Senior Center. PNCU President and CEO James P. Kelly made the presentation to Richard J. Kos and Ernest N. Laflamme, Jr., co-chairs of the senior center fund raising committee, and Marie Laflamme, a member of the capital campaign. “This is an effort that goes right to the heart of what the Polish National Credit Union is all about,” said Kelly. “These are our members, and this is our community, and we’re proud to be a part of it.”

Nejaime’s Wine Cellar Unveils Renovated Stores in Lenox, Stockbridge
LENOX/ STOCKBRIDGE — Nejaime’s Wine Cellars recently completed extensive expansion-and-remodeling projects at its Lenox and Stockbridge locations. Owner Joe Nejaime said ongoing grand reopenings are an opportunity for patrons to see and taste new selections the stores can now offer. “Our goal in both stores was to create a brighter and more spacious shopping experience,” he said. “The Lenox store has expanded by approximately 1,900 square feet, nearly doubling its size, and the Stockbridge store has been remodeled and rearranged to make better use of the space.” Both stores received new deli cases, freezers, and flooring, and the Lenox location will also benefit from a rehabbed parking lot. Nejaime noted that the stores’ selection of picnic items and accessories — popular among Tanglewood attendees — have been expanded as a result, as have their beer selection, high-end wines, fine whiskey, prepared foods, and specialty groceries including cheese, crackers, gluten-free items, gourmet chocolates, cookies, and other snacks, as well as gifts and accessories.

Court Dockets Departments

The following is a compilation of recent lawsuits involving area businesses and organizations. These are strictly allegations that have yet to be proven in a court of law. Readers are advised to contact the parties listed, or the court, for more information concerning the individual claims.

CHICOPEE DISTRICT COURT
Arnold’s & Eddie’s Foods Inc. v. Nora’s Restaurant Inc.
Allegation: Non-payment of goods sold and delivered: $3,198.32
Filed: 5/2/13

HAMPDEN SUPERIOR COURT
Pagonis Live Bait, LTD v. Pioneer Valley Wholesale Corp.
Allegation: Non-payment of goods sold and delivered: $29,275.35
Filed: 5/9/13

Sebastian Gledocki v. Associated Building Wreckers Inc. and Billy Kane
Allegation: Employment discrimination: $25,000+
Filed: 5/2/13

Stephanie Villineuve v. DeRenzy Document Solutions Inc., Mary DeRenzy and John Daigle
Allegation: Employment discrimination: $25,000+
Filed: 5/2/13

Trialco Inc. v. Diecast Connections Company Inc.
Allegation: Non-payment of goods sold and delivered: $208,723.39
Filed: 4/29/13

HAMPSHIRE SUPERIOR COURT
Matthew Boudreau and Shaylene Greenwood v. Affiliated Construction Services, Craig Orn and Ernie Austin
Allegation: Breach of construction contract: $25,000+
Filed: 3/21/13

Raymond A. Garrigle, executor of the estates of Maurice H. Pease and Nancy C. Pease v. Moors & Cabot Inc. and First Clearing, LLC
Allegation: Failure to remit invested funds on account upon request of duly appointed executor: $350,000
Filed: 4/18/13

Raymond Smith Jr. v. John’s Collision Inc. and John Oichiuzzo
Allegation: Breach of written agreement: $225,000
Filed: 5/31/13

SPRINGFIELD DISTRICT COURT
Adelphia Graphic Systems Inc. v. W.S. Sign Design Corp.
Allegation: Non-payment of goods sold and delivered: $9,939.56
Filed: 5/8/13

Northern Tree Service Inc. v. Chapman Waterproofing Company
Allegation: Non-payment of tree removal services: $12,000
Filed: 4/25/13

Terracon Consultants Inc. v. Opportunity Development Group Inc.
Allegation: Breach of contract: $10,971.22
Filed: 5/8/13

Cover Story Sales and Marketing Sections
Hiring Top Sales Performers Is Certainly No Accident

By Jim Mumm
BW0613bCOVDetermining the right person to hire isn’t easy, and when it comes to hiring a top-performing sales superstar, it’s even more difficult.
Let’s face it: there is a sea of apparently strong candidates looking for a job. And don’t kid yourself; any sales person worth their salt is going to be able to talk a good game.
But making a poor hiring decision will cost you dearly. Depending on which expert you listen to, the cost of making a poor hiring decision is anywhere between one and two and a half times the candidate’s annual fully loaded salary.
What should strong leaders do to mitigate the risks and maximize the return on investment pertaining to hiring top-performing sales professionals?  What can an organization do to not only greatly reduce hiring mistakes, but also build a highly effective sales organization? We need to paint a very clear picture of the perfect fit before we start looking for the candidate.  Then, we can objectively determine if the candidate truly fits in our picture. Here’s how.
Managers must follow a systematic, step-by-step recruiting, hiring, and on-boarding process. This system begins with identifying the primary function indicators (PFIs) of the sales role you are attempting to fill. PFIs are the basic tasks that a salesperson must be able to accomplish, such as prospecting, negotiating, and closing. Next, a professional manager must identify and determine the winning attributes of the best-fit candidate. Finally, the manager must ascertain whether or not the candidate is a proper fit for the team by building a team matrix.
To accomplish this, the manager utilizes these three core components (PFIs, winner attributes, and team matrix) to develop a series of questions designed to uncover the information needed to make a good hiring decision.  The questions are constructed so that the answers reveal how well the candidate fits the desired job profile. Scores to all answers are summed, and the best-fit candidate is revealed.

Three Steps
Let’s break down each of the three components and reveal how questions are developed from each area and give some sample questions that could be used.
Step one of building a hiring template includes identifying the actual functions the sales professional will be expected to perform. We call these functions primary function indicators because they reveal the actual functions the candidate must be able to accomplish and the behaviors at which the candidates must be proficient to perform these functions. Finally, we must determine the questions we should ask that will help us determine whether or not the candidate can perform these behaviors to the desired level of proficiency.
For example, if you are attempting to hire a sales professional capable of bringing in new business, he would have to effectively prospect. A question might be, “if we hired you to build this new territory to $2 million in one year, how would you do it?” The answer to this question will speak volumes. And you should be able to differentiate a made-up answer from one given by a sales professional who has actually lived it.
To make this step easier, we incorporate the SEARCH model.  SEARCH is an acronym that stands for skills, experiences, attitudes, results, cognitive skills, and habits. If we can create questions that reveal the candidate’s relative strengths and weaknesses in these six areas, we are well on our way to determining if they can actually perform the tasks. Once you’ve determined the questions needed to determine a candidate’s PFIs, you are ready to proceed to step two.
Step two is to identify whether or not the candidate has what it takes to be a top performer (winner) in your specific organization. We call these ‘winner attributes.’ To figure out whether or not the candidate has the winner attributes you require, it is helpful to use the BAT method. BAT stands for behavior, attitude, and technique. Behavior is all about what they do, technique concerns how well they do it, and attitude is how they feel about doing it. Let’s take a look at each.
Behavior involves understanding the planning, goals, and actions necessary to be successful in that role in your organization. For example, how well does the candidate set long-term, short-term, and daily goals, and how does this compare to how well your top performers set goals? You might ask, “tell me about your experience building and executing a plan to hit your sales objectives,” followed by “tell me what you did when you found yourself behind your target goals.”
Again, the answers will reveal how the candidate thinks and should give you a good idea of whether or not they have actually successfully built plans. If you ask the same question pertaining to goals to 20 different candidates, you’ll get 20 different answers. It is our job as managers to understand the required behaviors our top salespeople have and to identify the candidates whose behaviors are the closest match.
Next is technique, which consists of personal presence, tactics, and strategy. These are all measures of how well they are able to perform the behaviors that are necessary for success. Finally, attitude involves what’s between your ears. For example, some people don’t mind attending networking events and actually enjoy meeting and talking to new people. However, others dread networking events and would sit in the corner, check their e-mails, and talk only to people they know. The difference is their attitude toward, or how they feel about, networking. You might ask, “what are your favorite and least favorite prospecting activities, and why?”
Some examples of winner attributes for top-performing salespeople are the desire to win, strong internal motivation, superior discipline, and the ability to build and nurture relationships. Again, the key is to develop written questions that will help you determine whether or not the candidate has these desired attributes.
The final step in developing the hiring template is to determine how well the candidate will fit within your team. When filling a position in an existing department, it is important to find a candidate who fits best with your specific team. Often, managers try to hire the best producers, only to end up with a group of ‘fighter pilots,’ when what they really needed was a group of strong team players who can work and play well together for the good of the organization.
The key questions to ask are, do they supply skills needed by our team, or do they have skills that everyone else has? Are they a match for the current team or for the future team that we’re trying to build? For example, if you need to land new business and you have a stable of account managers, you need to ask questions that reveal the candidate’s ability to bring in new business because it complements the skills of your existing sales staff.
Once you develop four or five questions from this area that will help you uncover the facts, add them to your previous questions from PFIs and winner attributes. By now, you should have a good 30 core questions to use for each and every interview. Score each candidate on a scale from one to 10 for each question and determine, before you start interviewing, a lowest acceptable summed score from all questions. Create a list of ‘must haves’ and ‘nice to haves.’ If any candidate doesn’t achieve the minimum score or have all the ‘must haves,’ they are eliminated from the process.

Moving Forward
Once you’ve developed this approach to recruiting and interviewing candidates, you’ll be able to choose the best fit objectively based on relative, objective scores. Once you’ve chosen the best-fit candidate and informed the others that they are no longer in consideration, it is now time to implement your 90-day on-boarding plan.
At this point, you’re probably thinking, who’s got time to do all this?  Before you decide this is too much work, ask yourself how much time you spent talking to poor performers last year. Think of how many hours were spent writing up politically and legally correct ‘fix-it-or-hit-the-road’ letters last year. How many hours did you spend trying to coach or motivate poor performers who weren’t hitting their sales objectives? How many hours did you agonize over a weaksales person that you wish you would have never hired in the first place, but now that you have, you are hoping they’ll finally provide an acceptable ROI?
Consider having to fire them and start back at the beginning of the hiring process all over again. Think about the recruiter fees, the advertising costs you spend to place the ad, all the time your real performers wasted trying to bring them up to speed.
Perhaps it’s less expensive to invest time now finding the right salesperson for the role and properly on-boarding them, instead of spending all the time on the back end when you are stuck with a bad hire. We’ve all heard the saying, ‘pay me now, or pay me later.’

Jim Mumm is CEO of Sandler Training, serving Western Mass. He is an award-winning trainer, author, speaker, and successful entrepreneur; (646) 330-5217; [email protected]; www.jimmumm.sandler.com


Using Psychological Science to Hire People Who Can Sell

By Michael A. Klein
“Do you know what you can learn about someone from an interview?” I like to ask potential clients. My answer: “Plenty, and it begins with how well someone performs during an interview.”
Now, some think that in sales, if the candidate sitting across from you can sell themselves to you, then they can sell. But can they really? You know that they can sell you on them. And for some products and services, potential customers need to be sold on the salesperson. But other components loom large: can they sell to others? And will they sell to others? And can they sell what you are hiring them to sell?
Résumés and interviews (behavioral interviews, specifically) can provide valuable information, and, of course, no job offer  — even for commission-based positions — should be made without a careful review of prior experiences, reference checks, and probably more than one interview. But that information is still amazingly limited, and tells us little about whether this person can and willsell your product or service to others. This is where small or mid-sized businesses can benefit from the millions of dollars that large companies have spent on selection testing and assessment.
While using psychological testing to predict performance has a controversial, and some would say problematic, history, work being done over the past 15 years has led to a clear conclusion: we can predict work-related behaviors with great accuracy legally, quickly, and easily through the use of reputable assessment tools.
It’s important to note that there are currently no regulations for claiming accuracy in the sale of pre-employment tests. Therefore, unless taken to court, test publishers and distributers roam freely about the commercial countryside, making outlandish claims regarding the ‘science’ and usefulness of their hiring tests.
Fortunately, there is a silver lining here.  industrial/organization (I/O) psychologists and other psychometricians have been setting guidelines for the design, construction, validation, and reliability of these tests for more than 25 years. As a result, reputable test publishers adhere to these guidelines and can easily back up their claims with detailed (and frequently updated) technical manuals, validity and reliability studies, and published peer reviews. In the case of selection tests, it can’t be said often enough: let the buyer beware.
If you know where to look, and can assess the assessment, you will save time, effort, and great expense in the hiring process. As much as human beings are complex creatures, no two people are the same, and measuring something as complex as personality can feel insulting to our egos, the selection-testing industry has learned which traits, values, and emotional and social skills are far more likely to lead to those behaviors that result in actual sales. Although seemingly complicated, if there is a magic bullet, it’s this: the more psychometric data you have on someone, the more likely you are to hire the right person and avoid a hiring disaster.
There are an amazing variety of pre-employment assessments available, and they generally fall into one or more of these categories: personality, values and motivators, interests, emotional intelligence (maturity and polish), cognitive ability (intelligence tests), skills, and knowledge.
Even once this data is gathered, there needs to be a clear differentiation between what can be scientifically justified for the specific position and what is simply a personally desirable characteristic. For example, while a hiring manager may believe that successful salespeople have a strong desire to be acknowledged for their achievements (this particular motivator is known as ‘recognition’), that may be true of all salespeople, not just successful ones. One of the most basic mistakes managers make is assuming that a high level of a specific attribute, trait, or skill is responsible for success when, in fact, it has little to no actual impact on performance.
A client of mine told me that he didn’t need to study his salespeople (i.e. determine what traits, motivators, etc. differentiate high performers from low) because he knew that his top people all had two particular behavioral styles (from a test known as the DISC): dominance and influence. I explained to him that almost all of his salespeople probably have those styles regardless of potential because he only hires people with those styles, not to mention the fact that the impact of these two styles on sales has no basis in science whatsoever.
His desire to simplify and find a single score, result, or number is very common and, unfortunately, very misguided.
To answer the question of whether they can do the job, we must look first at personality traits. Based on studies using the most accepted model of personality in business (the five-factor model, or FFM), the following are a few of the traits that predict this ability:
• Self-confidence — demonstrating a belief in oneself;
• Experience seeking — enjoyment of new opportunities and adventures;
• Openness to others — concern for others’ experiences and feelings; and
• Drive — ambition and eagerness to advance and succeed.
However, that only answers the question of whether they can do the job. Whether they will do the job is answered by looking at the key motivators and values of the candidate. From other studies, we know that these values and preferences are key:
• Connection — the desire to build social networks and collaborate; and
• Business — the desire for financial success and wealth.
Unfortunately, a great salesperson can have these traits and motivators, but can still cause major problems internally. For example, ego can get in the way of working with others in the office, impulsivity can result in frequent mistakes, and a lack of common sense can turn into unrealistic expectations of themselves and others. Here is where one’s EQ (emotional intelligence) comes into play.
In short, EQ tells us how well someone understands and manages themselves, others, and the world generally. While EQ increases with age and can also overlap with personality traits, it can also be developed. Therefore, personality is more about hardwiring, while EQ looks at skills. The following are a few EQ scales that are important to sales, but can also be problematic if they are too high:
• Assertiveness – expressing oneself appropriately and not aggressively;
• Optimism — Staying positive despite setbacks, seeing opportunity; and
• Self-regard — Knowing and accepting oneself and one’s strengths and weaknesses
Lastly, many clients ask about the accuracy of self-assessment testing. “What good is this if the job candidate is not answering the questions honestly?”  “Can’t they just answer how they think we want them to?” The good news here is that many tests now utilize questions that are difficult to game. For example: “would you like to be a race-car driver?” To a test taker, answering this affirmatively might mean that they interested in exciting experiences, or, alternatively, it could mean they are someone who is an adrenaline junkie or someone who takes too many risks.
The tests are constructed in such a way that we know how successful salespeople answer (or, rather, their patterns of answers) as opposed to focusing on any one question. When good science is involved, it becomes far less obvious to the test taker, as well as the fact that it’s the combination of responses that tell us something.
In addition, psychological self-assessments have developed ways of identifying faked results — again, because of developers doing their homework during test construction. So, for many tests, we receive a report that tells us the likelihood that someone has attempted to present himself or herself less honestly than hoped.
Finally, no test can determine on its own if a person is a good job candidate. Psychological assessments or pre-employment testing must be only one part of a larger selection process that includes many other sources of information, including thorough background checking. To reiterate, if there is a magic bullet in the process of hiring effective salespeople, it is this: the more information we have on someone before they start, the better-positioned we are to make a good decision.

Michael A. Klein is president of Northampton-based MK Insights2. He has more than 16 years of experience as an assessment specialist, consultant, speaker, and facilitator. He focuses on the application of psychological data for the selection and development of individuals in organizations, including executives, leaders, salespeople, and highly trained professionals, with a specialty in family-owned firms. He has worked both internally and externally in human capital, including positions in organizational development and human resources. He has experience in healthcare, financial services, publishing, entertainment, pharmaceuticals, construction, and private equity, and is a full member of the American Psychological Assoc. and Society for Industrial and Organizational Psychology; (413) 320-4664.

Employment Sections
Colleges Work to Help Students Open Doors to Opportunity

Bay Path College’s Laurie Cirillo

Bay Path College’s Laurie Cirillo says the job market has improved, but there are still many challenges awaiting job seekers.

‘Marginal improvement.’
That’s the phrase one hears repeatedly from area college career-services professionals as they talk about the overall job market and the prospects for members of the class of 2013.
Roughly translated, those two words, or others used to convey the same sentiment, imply that conditions are certainly better than they were a few years ago, when, in the wake of the Great Recession, many sectors — including financial services, law, retail, and even healthcare — sharply curtailed their hiring, forcing many to stay in school or take jobs in fields other than the one they chose.
But while the skies have brightened slightly — moreso in the technical and healthcare-related fields than others — the job market is still challenging in many respects, said Laurie Cirillo, executive director of the Sullivan Career and Life Planning Center at Bay Path College. She noted that, while a large number (25% or more) of the school’s graduates go on to seek advanced degrees, those choosing to enter the job market are facing everything from stern competition — including many members of those classes that graduated during or just after the recession — to some lingering reluctance on the part of some employers to add to their payrolls.
“Given the fact that we have a positive job-growth outlook for the state, we’re preliminarily seeing our students have more success and find opportunities locally,” she said of the overall job market. “But there is a lot of competition for these opportunities.”
In this environment, said Cirillo and others we spoke with, candidates need any advantages they can get, and area colleges are becoming both diligent and imaginative in helping them find some.
These initiatives include everything from encouraging and creating experiential learning experiences — including internships, practicums, and co-ops — to networking events and career fairs designed to introduce students to employers, to programs providing help with résumé and interviewing skills.
Summing up these efforts, Jeanette Doyle, director of the Career Center at Springfield College, said they enable students to become better able to sell themselves to potential employers — a skill, or trait, that many need help with.
“Most students are too humble,” she noted, referring, generally, to how they respond to interviewers’ questions. “It’s always about selling your skills and qualifications. We have to remind them to go out and market themselves in the most positive light, and they have to remind themselves that they’re competing against other people for these jobs.”
Much of the focus today is on experiential learning, especially internships, which can bring a number of benefits for students and employers alike, said Candace Serrafino, interim director of Career Services at UMass Amherst, who noted that the school was recently ranked among the top 10 schools in the country by US News & World Report when it comes to students participating in internships.
For companies, she noted, interns can provide everything from technical skills to important generational perspective, to an additional hand when when many employers need one or more. For students, she added, they provide hands-on experience, insight into the working world, and an introduction to a company that might become an employer.
Jeanette Doyle

Jeanette Doyle says the primary objective of career center activities at Springfield College is to help students become more adept at selling themselves to employers.

“Every publication that we’re reading echoes the same message — that, in today’s market, students must have that career-related experience,” Serrafino said, noting that roughly 60% of the undergraduates at UMass do get some form of experiential learning experience, and, increasingly, they’re starting earlier in their college career. “Students are definitely getting that message.”
At Baypath, internships are required, said Cirillo, adding that, overall, the school has been successful in forging partnerships with area employers, such as Baystate Health, on a number of experiential learning opportunities that help prepare students for life after graduation.
For this issue and its focus on employment, BusinessWest talked with a number of area career-services professionals about both the state of the job market and ways colleges are working to open more doors for their graduates by making it easier to sell themselves to employers.

Degrees of Progress?
Those we spoke with said it will be perhaps six months or more before they’ll have anything approaching hard data on how well the class of 2013 is faring when it comes to entering the job market — and in their chosen field.
That’s when most surveys of graduates, revealing if, when, and where they’ve found employment, are compiled, said Maria Cokotis, career counselor in the College of Business at Western New England University. But she and others noted that there is plenty of anecdotal evidence to warrant the use of the phrase ‘marginal improvement’ or words slightly more positive.
And that aforementioned evidence comes in many forms, from the number of employers taking part in career fairs staged over the past several months to the wide range of companies that are hiring — from Enterprise Rent-a-Car to Health New England to a host of retailers, such as TJX.
“There are signs that the job market has gotten better since last year,” said Cokotis, adding quickly that there are caveats involving those who have found success, These include the field in question, flexibility with regard to geography — meaning those willing to relocate, especially to larger urban areas — experiential learning, and being realistic when it comes to expectations and a willingness to accept something less than the ideal job if doing so will start a career down the right path.
“If someone’s in information technology and is willing to relocate, there are a lot of opportunities that will present themselves,” she said, referring to one field along the spectrum.
“It’s also important for students to focus on the first job not as the ultimate career move, but a first step in their career,” she continued. “They should be thinking about where they can go to develop and apply some solid skills that will provide a stepping stone to the next position that they want to go to. Sometimes, students have a very idealistic outlook as to what they want in their first job, but they have to look at the realities of building on experience that will begin to carve a career path.”

Maria Cokotis

Maria Cokotis, a career counselor in the College of Business at Western New England University, says job seekers must be realistic in their expectations when it comes to that first job.

UMass Amherst’s Serrafino has also noticed an uptick in the job market, at least in certain fields.
“Anecdotally, what we’re seeing is that things are picking up slowly,” she said, putting some additional emphasis on that last word. “Certainly, some of the technical majors, such as our engineering students and our computer science students, are finding greater opportunities than our non-technical students, and our finance, operations, and accounting students are also faring well.
“We serve a lot of liberal-arts and sciences students, and for them, it’s a little softer market,” she went on. “But it certainly becomes firmer when a student has an internship or a co-op under their belt.”
Serrafino said that one of the more encouraging developments with regard to the market has been strong attendance among employers at the school’s four annual career fairs — one staged by the Isenberg School of Management, another for engineering students, the Alana fair (involving minority students), and the campus-wide Career Blast, staged in February, the largest of the events.
“We broke all records — the number of employers increased significantly, as well as the number of students participating,” she said, noting, as one example, that the engineering fair drew 91 employers and 1,350 students. A year ago, those numbers were 78 and 1,100, respectively. At the Career Blast, there were 141 employers and 2,000 students (most from UMass, but also others from surrounding schools). In 2012, only 98 employers showed up.
As impressive as the quantity of employers was the variety, she went on, noting that the list of participants included GE, ISO New England, Health New England, Liberty Mutual, Macy’s, General Dynamics, Hanover Insurance, and MGM Resorts International.
And while companies take part for several reasons — some are recruiting intern candidates or simply maintaining visibility, for example — many have been hiring this year.

Courses of Action
While the employment scene is brightening somewhat, entering the job market remains challenging, said Cirillo, adding that Bay Path, like other schools, is being aggressive in its work to help students better compete for jobs in their chosen field, and be prepared to succeed in those professions.
Internships and co-ops are a big part of the equation, she said, but the school goes further, with such initiatives as the Sullivan Center’s career and networking events that, as the name suggests, are designed to provide career education and networking opportunities customized to a major field of study. The sessions, staged throughout the spring, include keynote presentations, panelists discussing their careers, and structured networking.
There are sessions for legal studies, business, education, psychology, criminal justice, and science, said Cirillo, noting, for example, that speakers and panelists for the criminal-justice event included John Gibbons, U.S. marshal for the District of Massachusetts; Margaret Oglesby, assistant chief probation officer for Springfield District Court; Col. Timothy Alben, superintendent of the Massachusetts State Police; and Lucy Sotto-Abbe, Massachusetts Parole Board member, among others.
Another somewhat unique program at Bay Path is a career-shadowing program in which first- and second-year students go out into the field and spend some time with people in the profession they’ve targeted.
“It gives that first-year student a chance to really define the difference between what a job is like in their imagination and what it’s like in reality,” she explained, using forensic science, with expectations created by TV shows such as CSI, as one example. “We also encourage students to interview professionals working in the field and find out what their career stories are, and thus learn how they got to where they are, what kinds of career competencies they think are important for people in that field, and what their daily life and challenges are like.
“Getting in touch with professionals and being able to career shadow helps that first- or second-year student crystallize, or develop some confidence in, their major early on,” Cirillo continued. “Or, it might prompt them to say, ‘I thought I wanted to do this, but I don’t, so now I’ll do this instead.’ Developing confidence in the major early on is important.”
Meanwhile, it’s important for the student to have confidence as they go about their job search and take on those first job interviews. And that’s why many area schools have created programs to help them tackle those assignments.
Such initiatives range from UMass Amherst’s ‘Resumania,’ program, a four-day blitz during which career-services staff members prepare and update hundreds of résumés, to a host of efforts involving the art and science of interviewing, to seminars on the effective use of social media in a job search.
At Springfield College, said Doyle, the school brings alums back on campus to talk with seniors about what they’ll experience during a job search, at their first interview, and after they’ve been hired. It’s part of a larger effort to take learning beyond the classroom, she said, and prepare students for the workplace.
As part of this initiative, career-services staff members, sometimes working with alumni, conduct mock interviews with students, asking many of the tough, behavioral-based questions that are part and parcel to interviews today, and, overall, preparing them for something unlike anything they’ve experienced.
“Sometimes, students are surprised — they’ll say, ‘I was there for six hours; I had no idea it was going to be like this,’” she noted. “It’s still an employer’s market — there are a lot of candidates, and for them to pick the best one, they have to do their due diligence. We just want to help students be ready.”
At UMass, assistance also includes something that Serrafino called “job-fair prep workshops.” There were roughly a dozen conducted over the past year, she said, adding that they focused on everything from proper dress and body language to the questions they can expect.
“We teach the students to be able to market themselves in a 30-second infomercial,” she explained, “and focus on such things as how to greet an employer and how to put their best foot forward in a few moments, and not go up to someone and say, ‘so, what kind of jobs do you have here?’”

Happy Landing
Time will tell just how well the class of 2013 fares with its efforts to break into the job market. As those we spoke with said, there are many signs they will do better overall than those in many recent classes.
Meanwhile, the task at hand for area colleges is to continue to be imaginative with programs to help improve students’ odds and, overall, open more doors.

George O’Brien can be reached at [email protected]

Employment Sections
Johnson & Hill Builds on Its Reputation for Effective Match Making

Andrea Hill-Cataldo

Andrea Hill-Cataldo says job hunting has become a much more complicated process.

Andrea Hill-Cataldo knows how difficult it can be to match a job seeker with the right company. And a lingering recession — not to mention a more complicated hiring landscape — haven’t made things any easier.
“It’s so frustrating for candidates, sending résumés into this abyss, not hearing back. And for employers who are inundated with a hundred résumés, it’s hard to get back to every candidate,” said Hill-Cataldo, president of Johnson & Hill Staffing Services.”
“At one time, you walked your résumé into a company or did a nice cover letter with a nice presentation,” and that was sufficient, she noted. But now, with many companies relying on online applications, “you’re e-mailing your résumé, clicking here, clicking there. As a result, candidates apply for more positions, employers get more candidates, and it’s harder for everyone.”
That’s where a good staffing service comes in. “For us, we still have that personal touch. We’re meeting with candidates and advocating for them,” she told BusinessWest. “We also do a lot of career coaching; we advise them on their résumé, questions they should be prepared to answer, talk about the environments they want to work in, industries they’re interested in.”
Hill-Cataldo likes to talk about building relationships, not just with those seeking work, but with the employers Johnson & Hill has developed long-lasting connections with during the 18 years the agency has been in business.
“We have a team of people, some of whom have been here since the beginning,” she said. “It makes a big difference when our clients call, because we know their history, their culture. That’s a big value add. People like to do business with people they like and know and trust.”
Johnson & Hill has come a long way since Hill-Cataldo and her cousin, Michaela Johnson, launched it from the ashes of a former Kelly Services agency after that corporation decided to take back its privately managed franchises during the mid-’90s.
Johnson’s mother (and Hill-Cataldo’s aunt) had run that office for decades, building a solid reputation and a number of connections, and when she retired after her franchise closed, the younger pair felt they could continue the legacy, with Johnson providing the initial financial backing and Hill-Cataldo contributing “sweat equity,” she said.
“There were some key players who had been with the company for a long time, so we hired two key people and built a company around them,” she explained. “There was a great history there, established relationships of trust. We grew that and built on that.”

Changing Tides
Since those early days, Hill-Cataldo told BusinessWest, the agency has both evolved and expanded.
Geographically, Johnson & Hill has offices in Springfield, Northampton, and Pittsfield, but serves clients as far north as Greenfield, south into Connecticut, and east to the Worcester area.
Meanwhile, the company has shifted from a full-service job-placement service to one that focuses on administrative, accounting, and legal careers. “It makes a real difference when you focus and specialize,” she said. “We found business doubled once we decided to focus on niche businesses.”
The strategy helps Johnson & Hill to better understand the industries and employers they serve. “We really try to be big picture, looking at a long-term approach with clients, building rapport and trust, and putting a lot of time into getting to know their culture,” she explained.
“We stand behind what we do for them, and in turn, they come to trust us,” she continued. “We’ve had some unique opportunities beyond typical staffing services; they also trust us with training and workforce development. We have some very unique, long-standing relationships with clients we’re very appreciative of.”
Hill-Cataldo and her staff of 10 have witnessed a number of shifts in the way companies attract talent. One is an increasing reliance on the temp-to-hire concept, as opposed to direct hiring.
“Temp-to-hire is a great way to bring someone on and not commit, but it’s great for the candidate, too; it’s not a one-sided story,” she said, adding that, if it’s not a great fit, Johnson & Hill already knows the candidate and can hit the ground running to find him or her something else. And if the job works out, “both sides are informed and feel better about the match. It’s better to be on the same page when you hire someone.”
The role of an employment agency looms more important than before, too, especially for those — companies and job seekers alike — who are anxious about navigating an increasingly complicated employment landscape.
“Hiring has changed dramatically over the past five years,” Hill-Cataldo said. “I feel bad for smaller companies that used to just place an ad in the paper. Now, what do you do? What online source to you use? How do you find the best people, manage your social-media presence, and market for better candidates?
“You have to cast a wide net, and then you have to manage that,” she went on. “It’s not just combing through résumés and getting back to people. We find recruiting more difficult, and the Internet has made it even more difficult.”
For job seekers in particular, “it’s lonely for them sometimes,” she continued, adding that it doesn’t have to be. “Many employers hire differently now; they bring in temp-to-hire employees to see if it’s a good fit. And many work with services like ours; we make sure you’re being considered for as many positions as we can. We don’t charge a fee for candidates, and we advocate for you. It can be a real positive.”
Many employers are happy to partner with agencies to ease the burden of candidate searches while still casting a wide net. “Our clients are overwhelmed. They’re all doing more with less,” she said. “They’re trying to add next staff members or replace a staff member, but they’re overwhelmed by other responsibilities. With our help, they have the resources to really look at qualified candidates, rather than hundreds of résumés.”

Satisfying Work

With so many changes occurring in the employment field, the company participates in a number of local and national organizations to keep current, said Hill-Cataldo. “But, thankfully, meeting with clients, talking to clients all the time, that in itself is an education. We can draw conclusions from what we see out on the front lines.”
Many of the agency’s clients were affected by the Great Recession and its aftereffects, she noted, but the picture is improving. “We in this industry are used to ups and downs, and we’re coming out of another dip,” she said. “We’ve definitely seen an uptick recently … a slow climb out.”
But it’s not only job seekers who lost their employment during the recession that find Johnson & Hill’s services useful. “We also help people who have taken a break from employment to gain some experience and get back in,” she said, citing, as examples, those who choose to stay at home to care for an infant or a sick parent. “That happens, and that’s explainable, but now they need more skills, and it’s nice to help them build a bridge to get back.”
Whatever the case, “it’s really satisfying when people we’ve worked with find great situations,” she told BusinessWest. “And we feel really good about the companies we work with. We work with a lot of colleges and major employers. We consciously seek out certain employers, and we feel good when people take a job with them. We know they’ll have a good experience.”

Joseph Bednar can be reached at [email protected]

Employment Sections
What Does the Medical-marijuana Law Mean for Bay State Employers?

John S. Gannon

John S. Gannon

Last November, Massachusetts became the 18th state to adopt a medical-marijuana law after voters approved a ballot referendum. The law protects qualifying patients, physicians, and dispensaries from state criminal and civil penalties associated with the medical use of marijuana.  Massachusetts employers are wondering how the new law will affect workplace drug policies and whether they will need to accommodate disabled employees’ marijuana use.
Here’s what they need to know.

Qualifying Use

The Massachusetts Humanitarian Medical Use of Marijuana statute paves the way for patients to use and possess marijuana for the purpose of treating “debilitating medical conditions, or the symptoms thereof.” Debilitating medical conditions include cancer, glaucoma, HIV/AIDS, hepatitis C, amyotrophic lateral sclerosis (ALS), Crohn’s disease, Parkinson’s disease, and multiple sclerosis. In addition, a physician can certify that other conditions are sufficiently debilitating if the patient is suffering from conditions that substantially limit a major life activity.
Patients suffering from a debilitating medical condition can apply to the state Department of Public Health (DPH) for a medical-marijuana registration card by submitting a written certification from a physician with their application. The registration card verifies that the cardholder is a qualifying patient exempt from state criminal and civil penalties for marijuana use.

Matters of Policy

The big issue for Massachusetts employers is whether they need to alter workplace policies governing drug use in light of the new medical-marijuana law. By now, employers should be well aware of their duty to provide reasonable workplace accommodations to handicapped employees. Could an employer unlawfully fail to accommodate an approved employee if off-site marijuana use is not tolerated? What about an applicant who fails a pre-employment drug screen because of medical-marijuana use or who tests positive for drugs in a drug test after employment?
These thorny questions are not answered outright by the Massachusetts Humanitarian Medical Use of Marijuana statute or by recent regulations promulgated by the DPH.

Still Illegal Under Federal Law
It’s important to note that the use of marijuana is prohibited by federal law, which lists marijuana as a Schedule I drug and does not provide exceptions for medicinal use. State courts in other jurisdictions have relied on federal law in ruling that employers need not accommodate marijuana use, pointing out that the activity is still illegal under federal law.
Similarly, certain federal laws and regulations require particular employers to follow drug-testing protocols and implement policies aimed at maintaining a drug-free workplace. Because these federal laws pre-empt (or trump) state laws, employers should continue to follow these laws when it comes to enforcing drug-related workplace practices and policies.

A Reasonable Accommodation?
In Massachusetts, any challenge to drug-free workplace practices will likely take shape via the state anti-discrimination statute (Chapter 151B). This measure, along with federal law, prohibits discriminating against employees who are ‘handicapped,’ which is defined by law as being substantially limited in a major life activity. It’s safe to presume that an employee suffering from a ‘debilitating medical condition’ could be considered handicapped and entitled to a reasonable accommodation in the workplace.
The $64,000 question is whether accommodation requests connected to medical-marijuana use are reasonable.

Some Questions Answered, Others Not So Much
The Massachusetts Humanitarian Medical Use of Marijuana statute makes it clear that an employer does not have to accommodate on-site use of medical marijuana. So there is no need to allow employees to light up in the lunchroom or bring marijuana brownies to work. Even so, the law does not address off-site use.
Consider, for example, an employee who is suffering from a debilitating medical condition, perhaps cancer, and who has been approved to use marijuana to help control nausea associated with treatment. Should that employee be allowed to come in late a few days a week because of the off-site marijuana use? It’s possible that such an accommodation might be reasonable under state law, even if the employer has a zero-tolerance drug policy.
What if the employee is subjected to drug testing and tests positive because of his medical use of marijuana? In other jurisdictions where these issues have arisen, courts have ruled that the employer did not have to excuse the use of an illegal drug, and it’s possible that a Massachusetts court would agree. But because this law is new and untested, it’s difficult to predict how a state court or administrative agency would handle these issues.
The only safe play is to check with employment counsel before taking any adverse employment actions for drug use against an employee who is registered to use medical marijuana.

John Gannon is an attorney at the management-side labor and employment firm Skoler, Abbott & Presser, P.C.; (413) 737-4753; [email protected]; www.linkedin.com/in/johngannonesq

Briefcase Departments

Mohegan Sun Increases Projected Project Cost
PALMER — Mohegan Sun has upped the projected cost of its Palmer gambling resort to nearly $1 billion with the addition of an indoor-outdoor water park and a second hotel, making the rural project the largest in the competition for the sole Western Mass. casino license. The project will probably include indoor surfing, a lazy river feature, and an extensive series of outdoor zip lines. The new $130 million to $150 million resort component, inspired by the Pump House water park at the Jay Peak resort in Vermont, will be developed by Boston-based Finard Properties, which has also joined with Mohegan Sun to build a retail complex at the development. Plans call for the second hotel to be connected to the water park and detached from the main casino hotel. The second hotel would have about 250 rooms. Mohegan Sun is one of three prominent gambling companies in the hunt for casino development rights in Western Mass. Mohegan is competing with MGM Resorts, which has proposed a casino and entertainment complex in downtown Springfield, and Hard Rock International, which has planned a casino and hotel resort on the Big E fairgrounds in West Springfield. The state Gambling Commission is expected to choose the winning project in early 2014.

Springfield Symphony Orchestra Hires New Executive Director
SPRINGFIELD — The board of the Springfield Symphony Orchestra (SSO) announced that it has hired Audrey Szychukski as the new executive director of the SSO. Audrey Szychulski will join the SSO on Aug. 1 upon leaving her current position as executive director of the Erie Philharmonic in Erie, Pa. Szychulski fills the vacancy created in January when long-time SSO Executive Director Michael Jonnes retired. SSO President Kristina Drzal Houghton noted that, “from our first round of résumé screening, and through every subsequent step of interviewing, reference gathering, and especially after spending time with her, Audrey has consistently stood out as our most promising candidate for this critical position. The executive board and I feel that we have found the right person to help us lead the SSO through our next period of success.” SSO Musical Director Kevin Rhodes was equally positive, commenting that “I could not be more excited to be welcoming Audrey to the SSO family. She will bring an energetic blend of skill, enthusiasm, and musical knowledge to the SSO. Trained as both an arts administrator and as a musician, I am really looking forward to the synergy that Audrey and I will develop as the Springfield Symphony begins its 70th-anniversary season and we guide the orchestra into its eighth decade.” The symphony will make a further announcement and formal introduction closer to Szychulski’s official start date. Peter Salerno, acting executive director of the SSO, will continue in that capacity until Aug. 1.

REB Head Bill Ward to Step Down This Fall
SPRINGFIELD — J. William “Bill” Ward, a longtime leader in the region’s workforce-development arena and president and CEO of the Regional Employment Board of Hampden County (REB), will step down from his position at the end of this year or early 2014. Ward has served in his position with the REB for 32 years and was the driving force behind the organization’s leadership and innovation in a number of workforce initiatives, including the development of one-stop career centers FutureWorks in Springfield and CareerPoint in Holyoke, which serve 20,000 job seekers annually. In a career that has been primarily focused on creating access to employment and self-sufficiency for the region’s low-income citizens, it was under Ward’s leadership that the REB established the Minority Employment Program in the 1980s. This initiative found employment for approximately 500 people a year during the program’s existence. The REB opened the first competitively bid one-stop career centers in 1992, which were recognized by the National Alliance of Business as the “One-Stop Centers of the Year.” Ward launched the Center for Youth Internships and Employment to prepare disadvantaged youth for employment, and formed the Women’s Mentoring Partnership designed to help women transition from welfare to work, matching low-income women with professional women in the business world for mentorship and support. In 1992 he founded the Literacy Volunteer Network, which trained more than 400 volunteers to tutor adult learners in English-literacy skills. The LiteracyWorks initiative formed during his tenure has coordinated various literacy initiatives in the region. Under his leadership, an early-literacy initiative, Talk/Read/Succeed, achieved local and national funding while aiming to raise the literacy skills of young children living in Springfield Public Housing centers, a requirement for future economic success. The REB under his direction started a precision-manufacturing initiative designed to replace retiring workers in the industry with the next generation of machinists by strengthening training and outreach at vocational schools in the region. Ward has been recognized for taking a leadership role in promoting community justice and in 2010 received the Human Relations Award from the National Conference for Community and Justice. In 2009 BusinessWest magazine honored him as a Difference Maker for his contributions to quality of life in the Pioneer Valley. His community service and engagement include service as board president of the Assoc. of Community Living, Abilities Unlimited/Kamp for Kids, and Partners for a Healthier Community.  He also serves on the board of Friends of the Homeless of Greater Springfield. The REB board of directors has established a search committee to identify the organization’s next leader, and a successor will be selected by late this year. Information on the position can be found online at www.rebhc.org.

Construction Unemployment Falls to 10.8% in May
WASHINGTON, D.C. — With the summer building season underway, the nation’s construction industry added 7,000 jobs in May as the unemployment rate dipped to 10.8%, which is down from 13.2% in April and the lowest rate since October 2008, according to U.S. Labor Department. Since May 2012, the industry added 189,000 jobs, or 3.4%. Despite gains in every other construction sector, the non-residential building sector lost 2,600 jobs for the month. Year-over-year, the sector added 15,300 jobs, or 2.3%. Non-residential specialty trade contractors added 1,200 jobs in May and netted 51,600 workers, or 2.5%, since the same time last year. Heavy and civil-engineering employment rose by 3,100 jobs in May and increased by 28,600 jobs, or 3.3%, from May 2012. In contrast, the residential sector added 900 jobs for the month and 18,100 jobs, or 3.2%, during the last year. Residential specialty trade contractors added 4,600 workers for the month and 76,300 workers, or 5.2%, on a year-over-year basis. Overall, the nation added 175,000 jobs as the private sector expanded by 178,000 jobs and the public sector shrunk by 3,000 jobs.

Court Dockets Departments

The following is a compilation of recent lawsuits involving area businesses and organizations. These are strictly allegations that have yet to be proven in a court of law. Readers are advised to contact the parties listed, or the court, for more information concerning the individual claims.

CHICOPEE DISTRICT COURT
Liberty Industries Inc. v. Diecast Connections Inc.
Allegation: Breach of contract: $16,690.15
Filed: 5/8/13

HAMPDEN SUPERIOR COURT
Goodless Brothers Electric Co. Inc. v. Kronenberger & Sons Restoration Inc. and Safeco Insurance Co. of America
Allegation: Claim by subcontractor against the general contractor and its bonding company: $9,681.50
Filed: 5/14/13

Lawrence K. Richmond v. The Janlynn Corp.
Allegation: Non-payment of goods sold and delivered: $27,746.67
Filed: 5/17/13

Susan M. Kinsella v. Lifetyme Exteriors, LLC
Allegation: Breach of contract: $53,500
Filed: 5/16/13

HAMPSHIRE SUPERIOR COURT
Colee Asia v. Rescare Inc. and Alutiiq Education & Training, LLC
Allegation: Employment discrimination: $57,000+
Filed: 5/28/13

Forty Pire, LLC v. Country Bank for Savings
Allegation: Disputed accrued interest on commercial note and prepayment penalties: $30,000
Filed: 5/10/13

James Malandrinos and PPC Contractors Inc. v. Saucier Construction, LLC
Allegation: Seeking damages for improper imposition of a mechanics lien: $25,000
Filed: 4/1/13

John G. Edwards v. Valley Industries, Inc. d/b/a Armstrong Nautical Products
Allegation: Product liability: $44,321
Filed: 4/13/13

SPRINGFIELD DISTRICT COURT
BDM + Furniture Inc. v. Boston Barstool & Contract Seating, LLC f/d/b/a/ The Chair Gallery, LLC and Sarah Jean Quiroga
Allegation: Non-payment of goods sold and delivered: $16,808.95
Filed: 5/8/13

Michael J. Stuart and Nicole R. Stuart v. Spartan Bobcat & Concrete Services d/b/a Spartan Services
Allegation: Breach of contract by installing exterior walkways and stairs in violation of code and failure to complete work: $21,400
Filed: 4/23/13

Security Engineering Inc. v. Veritech Corp.
Allegation: Non-payment of labor, materials, and services provided to maintain a security system: $6,617.67
Filed: 4/25/13

WESTFIELD DISTRICT COURT
Cosmo Films Inc. v. Ultimate Finishing, LLC
Allegation: Non-payment of goods sold and delivered: $14,315.84
Filed: 4/30/13

Briefcase Departments

Tighe & Bond Publishes 2012 Water, Sewer Rates
WESTFIELD — Tighe & Bond recently published the results of its 2012 water and sewer rate surveys for communities in Massachusetts. The results from these latest surveys indicate that residential users in Massachusetts pay approximately $498 and $646 annually for water and sewer, respectively. This represents increases of 6% and 8.2% above the 2010 averages. For more than a decade, Tighe & Bond has gathered and reported data on water and sewer rates service in Massachusetts. Using rate information that survey participants provide, we have calculated the annual average homeowner’s cost for water and sewer service based on the consumption of 90,000 gallons or 120 hundred cubic feet of water. The survey, which includes typical annual homeowner water costs for each community in Massachusetts, also provides information regarding rate structures and billing cycles. Tighe & Bond’s water and sewer rate surveys offer municipalities and private suppliers a benchmarking tool for comparing their rates against other suppliers in the state. This can be particularly useful information when suppliers are considering adjustments to their current rates or rate structures.  The survey results are available to the public online at rates.tighebond.com. Founded in 1911, Tighe & Bond provides engineering and environmental services for clients in the government, industry, healthcare, education, real-estate, energy, and water/wastewater markets.

Massachusetts Economy Expected to Keep Growing
BOSTON — The Massachusetts economy is expected to grow slowly before accelerating in early 2014, benefiting from a boost in manufacturing, according to an economic forecast issued by a group of regional economists. According to the Boston Globe, although Massachusetts is in the midst of a slowdown in hiring, the five-year forecast by the New England Economic Partnership shows the state’s economy adding jobs at a significant pace beginning next year. Employers are expected to add about 30,000 jobs this year, and more than double that number in 2015. The state’s unemployment rate, 6.4% in April, is expected to decline to 5.2% by the end of 2017, the report said. Consumer confidence is getting a boost from improvements in the job market, stock market, and housing market. On the latter front, Massachusetts home prices were up by 5.3% in February from a year earlier, while residential building permits increased 24%. The forecast predicted continued improvement in housing and more jobs in construction. Manufacturing, which has experienced large job losses in recent decades, is expected to expand over the next few years because of global demand for advanced products made regionally, including medical devices, specialized materials, and semiconductors. Meanwhile, the report by the New England Economic Partnership raised questions about whether there will be enough skilled workers in the state to meet employers’ demands as Baby Boomers retire and leave the workforce. As many as 100,000 job vacancies in the manufacturing sector across New England will be created by retirements, the report said, but there may not be enough student interest in vocational education to fill those jobs or enough capacity in the educational system to train so many workers.

Unemployment Persists in Springfield, Regionwide
SPRINGFIELD — The city’s unemployment rate was 10.7% in April, the same as it was in March but higher than the 9.8% unemployment rate recorded a year ago. As a region, Greater Springfield had an unemployment rate of 7.5% in April, down from 8% in March, but again higher than the 7.2% rate recorded in April 2012, according to statistics from the state Executive Office of Labor and Workforce Development and the federal Bureau of Labor Statistics. According to state employment numbers figured by using a survey of businesses, Greater Springfield added 5,200 jobs in from March to April. But the region is still down 2,200 jobs, or about 0.8%, on the year. Statewide, jobs are up 48,100 on the year for a 1.5% increase. The state added 45,200 jobs in April, an increase of about 1.4%. Statewide unemployment was 6.3 percent, unadjusted for seasonal changes in the state economy. Adjusted for seasonal changes, Massachusetts’ total unemployment rate remained unchanged at 6.4%, lower than the national average of 7.5%. However, when people who have stopped looking for work and those working part-time who would rather be working full-time are added to the calculation, Massachusetts’ unemployment rate rises to an average of 12.8% over the last six months, according to the federal Bureau of Labor Statistics.

Banking and Financial Services Sections
Business Owners Must Understand Fraud Risk and Internal Control

Melyssa Brown

Melyssa Brown

Fraud is not an accounting problem or an internal-control problem; it is a human problem.
Most people who commit fraud at work are not career criminals, and often are trusted staff with no criminal history. Those employees have motivation, rationalization, and opportunity, which can be noticed by others within the organization.
Fraud affects all sizes of businesses, from small, family-owned companies to nationally recognized organizations. Effective anti-fraud programs and controls encompass a wide range of activities and policies, including governance, employee training and education, fraud-risk assessment, and internal controls.
What follows is an examination of how and why fraud occurs, and the steps companies can take to control it.

Motivation, Rationalization, and Opportunity
Motivation or pressure may include financial problems; addictions like gambling, shopping, or drugs; as well as pressure to show good or improved performance or results. Rationalization occurs when employees think they are justified because they are underpaid, or it’s for their family, or they need it now but they’ll pay it back before anyone notices. Opportunity is created when there are weaknesses in controls.
Employees think they won’t get caught because of a lack of oversight. Behavioral red flags that can indicate fraud include living beyond one’s means, unusually close association with a vendor, customer, or auditor, control issues, and unwillingness to share duties. Executing or implementing the methods and procedures suggested below can mitigate the opportunity for fraud.

Governance
Preventing fraud starts with setting the tone at the top for the rest of the organization. Management needs to create a culture through words and actions where it is clear that fraud is not tolerated, that any such behavior is dealt with swiftly and decisively, and that whistleblowers will not suffer retribution. The board of directors (or owner, if, due to the organization’s size, no board is established) should maintain oversight of the fraud-risk assessment, obtain assurance that controls are effective, and oversee that internal controls are established. The board of directors could also hire a certified public accounting firm to perform an external audit of the organization’s financial statements.
Having an internal audit department or fraud-examination department provides objective assurance to the board and management that controls are sufficient for identified fraud risks and ensures that the controls are functioning effectively. Also, that department can perform surprise audits on various areas of the organization on a haphazard, rotating basis to deter and detect fraud.
In addition, the board or management could create a code-of-conduct policy that includes appropriate ethical practices, anti-fraud verbiage, and whistleblower information, which should be circulated to all employees, with rewards outlined for whistleblowers. In order to be effective, communication regarding the organization’s anti-fraud policies and procedures must flow throughout the organization.

Employee Training and Education
All employees must receive a clear message that the organization is serious about its commitment to preventing fraud, and each employee must fully understand all relevant aspects of the organization’s anti-fraud policies, and should understand how their individual daily responsibilities are designed to manage fraud risks.
Every level of staff, including managers and executives, could be given fraud and ethics training when hired and updated yearly. Employment background checks should be performed during the hiring process. Also, employees could be cross-trained, which coincides with job rotation and mandatory vacations where someone else performs the work for a specified amount of time, which lessens the opportunity for one employee to commit fraud.

Fraud-risk Assessment
Management can perform a fraud-risk assessment on a systematic and recurring basis. This process should identify the organization’s vulnerability to fraud and where it may occur, consider relevant fraud schemes and scenarios, and determine the potential impact of fraud on the financial statements.
Management’s assessment of fraud risk should also include the potential for fraudulent financial reporting, misappropriation of assets, and unauthorized or improper revenue and expenditures. While analyzing the organization’s vulnerability, consider the following: how an employee might exploit weaknesses in internal controls, how they could override or circumvent controls, and what an employee could do to conceal the fraud. The process should also include ongoing testing of the internal controls to ensure that they are functioning as designed and changes are made in a timely manner to strengthen the controls.

Internal Controls
Effective internal controls start with the proper segregation of duties.  Management should ensure that transactions are initiated, authorized, recorded, and reported according to management’s policies and procedures, which are driven by the organization’s governance.
Management’s review of reconciled general ledger accounts, including but not limited to bank statements, accounts receivable, accounts payable, and financial statements, should occur monthly.
Examples of additional internal controls include: blank checks kept secured in a locked cabinet, safe, etc.; two signatures required on checks over a certain limit; secured inventory that is monitored and counted periodically; management approval of new vendors; and employee-expense reimbursement requiring a formal report completed and approved, with actual itemized receipts attached.
Even the best systems of internal control cannot provide absolute assurance against fraud. To help reduce the risk of fraud, organizations need to diligently perform a fraud-risk assessment and internal-control review. Those are the keys to prevention and timely detection of fraud.
The methods noted above may seem daunting; however, a reputable certified public accounting firm can provide examples of policies and tools for the fraud-risk assessment process.

Melyssa Brown, CPA, MBA is an audit and accounting manager for the Holyoke-based public accounting firm Meyers Brothers Kalicka, P.C.; (413) 322-3484; [email protected]

Sections Technology
How to Manage the Minefield of Electronically Stored Information

Amy Royal

Amy Royal

“They say I’m old-fashioned, and live in the past, but sometimes I think progress progresses too fast!” — The Lorax, Dr. Seuss

We live and work in a digital age. More than 89 billion corporate e-mails are sent and received each year, and more than 300,000 pages of text can be stored on one computer alone.
Electronically stored information (ESI) comes in a multitude of different file types and formats, including, but not limited to, e-files or electronic documents that exist on a user’s hard drive, a network drive, or a document management system; word-processing documents, such as Word or RTF; PowerPoint presentations and Excel spreadsheets; graphic files, such as PDFs, TIFs, or JPEGs; web pages or web-based data; video or sound files; server or web based e-mail; and Outlook/Exchange. ESI may be stored duplicatively as well; for example, an e-mail may be stored in Outlook and on that same user’s BlackBerry or iPhone.
The volume of ESI continues to grow and multiply rapidly just in the course of ordinary business operations. Because of the sheer and ever-expanding volume of ESI, storing and managing it can be extremely overwhelming, costly, and burdensome for businesses. Yet, not properly storing and maintaining certain ESI may present legal liabilities.
To ensure that necessary ESI is being maintained and that unnecessary ESI is being purged, companies should implement a comprehensive document retention-and-destruction policy that specifically addresses ESI. Presently, many companies may not even have a formalized written plan that describes how and where their paper documents will be stored and when they will be destroyed, let alone addresses the storage and destruction of ESI. In fact, since having such a policy is not mandatory, for many companies, less-formalized standards, which have not been memorialized in writing, have evolved over time as a matter of practice.
Establishing a written comprehensive document retention-and-destruction policy is a best practice for two primary reasons: legal compliance and legal defense. In our digital age, because many documents are electronically stored, establishing such a policy that also specifically addresses the storage, retention, and destruction of ESI is crucial. Indeed, ESI presents unique challenges because of its volume and the difficulty in accessing and retrieving it.
From a legal-compliance standpoint, there are myriad laws that mandate the types of documents that must be retained, the ways in which they must be stored, and the length of time they must be kept. For example, wage-and-hour laws require businesses to maintain certain payroll records containing information such as the employee’s name, address, Social Security number, and job title and the hours worked and amount paid to that employee for each pay period. In an increasingly digital workplace, this type of payroll information may only be stored electronically.
Accessing and retrieving that information, and otherwise ensuring its preservation, is critical to demonstrate compliance should a company face a federal or state governmental audit. Furthermore, privacy laws require that businesses reasonably and adequately safeguard confidential or private information whether it is stored in paper or electronic form. Thus, a formalized written policy should account for these as well as a variety of other issues and detail the ways in which the company intends to comply.
From a litigation-defense standpoint, companies have a legal obligation to preserve all relevant documents if litigation arises or if litigation is threatened. In other words, once a lawsuit is filed or anticipated, companies cannot lose or inadvertently destroy documents that are germane to litigation. Therefore, not having a document retention and destruction policy that specifically addresses ESI when faced with litigation or the possibility of litigation can have devastating consequences.
For example, if a former employee’s attorney requests relevant ESI that cannot be accessed or retrieved, or was otherwise deleted, a court may determine that there was a failure to preserve such relevant information and impose severe penalties and sanctions against the company.
To minimize the risk of inadvertent deletion of ESI, a company’s document retention-and-destruction policy should contain two essential provisions: a litigation-hold provision and a departing-employee provision. A litigation-hold procedure ensures that the requisite steps are taken to preserve relevant documents.  A carefully crafted litigation-hold section will identify the triggers for a hold on documents, the steps to be taken once a hold has been initiated, the types of records and data that must be preserved, and the forms in which such records and data must be preserved, the consequences for failure to preserve such data, and the name of the person at the company who can be contacted with questions or for technical assistance.
Procedures regarding the length of the retention of a departing employee’s ESI should also be included in a document retention-and-destruction policy, even when litigation is not anticipated. Too often, an unexpected lawsuit ensues, and it is discovered too late that a former employee had created ESI pertinent to the company’s defense. Indeed, oftentimes, within days after the employee’s departure, IT has reset the former employee’s computer so that another employee can use it. Thus, creating a policy that includes a set time period for the deletion of a departing employee’s ESI when litigation is not anticipated is very important.
Having a set time period can otherwise be beneficial, especially for those companies that tend to retain anything and everything. Consider, for example, a snarky e-mail that has been kept too long and now surfaces in litigation that otherwise was not expected or anticipated. If the company had a document retention-and-destruction policy that included a specific time period for deletion, such an e-mail would have been long since gone.
A carefully crafted document retention-and-destruction policy can otherwise be advantageous to companies insofar as it helps to reduce costs, eliminates the retention of redundant or unnecessary documents, maximizes computer-server storage space; and provides organized and streamlined systems for maintaining and managing documents.
Keeping paper documents organized and maintained is relatively easy; however, as noted throughout, the same is not true for ESI. Preserving ESI is very complicated and requires extraordinary coordination between upper management, human resources, legal counsel, and IT.
To minimize your company’s legal risks, you should act now by creating a formalized document retention-and-destruction policy that incorporates standards for safeguarding and disposing of ESI.
At implementation, you should train your staff to ensure they understand the policy and their relation to it. After implementation, you should periodically audit your company’s overall compliance with the policy.

Amy B. Royal, Esq. specializes exclusively in management-side labor and employment law at Royal LLP, a woman-owned, SOMWBA-certified, boutique, management-side labor and employment law firm; (413) 586-2288; [email protected]

Features
West Springfield Aims to Grow, Casino or Not

WestSpringfldCommunityProfilesMAPWest Springfield Mayor Greg Neffinger says his city doesn’t need a casino.
But that doesn’t mean he and other municipal and economic-development leaders aren’t excited about the bid put forth by Hard Rock International to site a destination casino on the Eastern States Exposition grounds.
When asked what that would mean, however, Neffinger paused for a moment before bringing up a favorite topic.
“I’ve just lowered taxes for the second time in my budget,” he said, noting that the town, recently saddled with the fifth-highest commercial tax rate in the state, now ranks around 16th, and the mayor would like to drop it further in an effort to attract more companies. “So I feel that West Springfield doesn’t need a casino for its economic vitality.”
Instead, he makes a regional argument for a casino, one that would benefit surrounding communities, including Holyoke, Chicopee, Westfield, and Agawam. “I think the casino in West Springfield should be a regional benefit, and the money that’s generated by the casino should be seen as a benefit to all the communities around us. We’re hoping to partner with all our adjacent communities to see how everyone can see the various benefits from the casino.”
But, just as Springfield officials across the Connecticut River have vowed not to stop growing organically even while they promote a casino bid by MGM Resorts International, Neffinger said his town’s economic growth will not be dependent on a gaming resort.
“We are now developing plans that we feel will be beneficial to West Springfield whether a casino is sited here or not,” he said, noting that a small army of consultants, planners, engineers, and attorneys are discussing the potential of the Big E site.
For instance, “there’s a large, undeveloped industrial area adjacent to the casino site, going from the Big E all the way to the power plant along the Westfield River. We hired a planner, Sasaki Associates out of Watertown, to look at those adjacent properties and see what type of commercial, entertainment, or recreation potential they have — either to enhance the entertainment-destination theme, or things that could be done without a casino.”
Memorial Avenue is only one course on Neffinger’s plate these days. To boost growth across the city, particularly in key areas like Memorial, Riverdale Road, and Westfield Street, he has created new positions for a planning and development director (Doug Mattoon) and an economic development director (currently vacant since Michele Cabral resigned earlier this year), and made efforts to streamline the permitting process and make the town more business-friendly.
The growing West of the River Chamber of Commerce, which encompasses West Springfield and Agawam, has taken notice, said Debra Boronski, president of the Massachusetts Chamber of Commerce, which manages the West of the River chamber.
“The mayor has been very active, making sure he is present at every event we have, and I think that speaks volumes in regard to him wanting to be connected to the business community,” she said. “He has embraced our quarterly coffee hour with the mayor, and he is always available for those forums as well. He is quite candid about how he feels about West Springfield being a great place to live, work, and do business.”

Architect of Change

Mayor Greg Neffinger

Mayor Greg Neffinger says the properties bordering the proposed casino have great potential whether or not West Springfield wins the bid.

Neffinger, a former architect, noted that each of West Side’s major commercial centers has its own character and set of needs. “Westfield Street is more neighborhood businesses, while Riverdale Road has a life of its own; it’s a very popular location, and restaurants, retail, and car dealerships seem to do well there because of all the traffic going through. Places like CVS, Home Depot, and Costco also do well there.”
He conceded, though, that most of the buzz on Riverdale occurs south of Interstate 91, while the northern stretch of the thoroughfare, between the highway and the Holyoke Mall area, could use more development. A number of chain restaurants — Outback, On the Border, Hooters, and Five Guys, to name a few — have succeeded there, and a tenant is looking to move into the former Piccadilly Pub location. “We think that part of Riverdale Road has lots of potential.”
Armed with a larger planning and development team than past administrations have enjoyed, Neffinger expects progress on other fronts as well. Further development of Agawam Avenue Extension is a key goal in a 2005 report on the Merrick-Memorial section of the city — one of many recommendations he wants to set into action.
“We’re doing a whole rezoning of the Merrick section. That was part of the Merrick-Memorial study,” he told BusinessWest. “When we brought in planners to begin looking at it, they found that virtually 100% of the Merrick section was non-conforming, and [developers] would have to go for a special permit, and it’s questionable whether they’d do that. As an architect, I felt that builders, developers, and entrepreneurs would be more attracted to areas of town that were conforming.”
As a result, a new zoning structure for the area should be completed by June, and virtually all the parcels will be conforming, said Neffinger, who said full development of the area could add $1 million to the tax base.
The mayor repeatedly stressed the importance of a robust planning and economic-development staff, and said the town wants to fill Cabral’s position with someone savvy in 21st-century communication.
“We spoke with a number of retired economic-development directors, and I think the way of reaching out to business is changing, with social media and websites,” he explained, “and so we’re hoping that we can get someone with more of a marketing background who can reach out to businesses and let existing businesses know we’re here and we care about them doing business in West Springfield.”
In addition, he and various planning officials are talking about ways they can improve the process by which businesses locate in town. “One of those is electronic permitting, and hopefully, that’ll be in place next month.”
Neffinger said the Town Council is also discussing exempting businesses from taxes on equipment up to $10,000 in value. “We don’t make much on it, and our administrative costs are almost equal to the money that comes in. There’s a lot of paperwork involved for small businesses, so they’ll save some money and time.”

Rolling the Dice
Of course, it’s hard to ignore the prospect of one decidedly large business — that’s Hard Rock — that wants to call West Springfield home.
Boronski noted that the West of the River Chamber surveyed members and non-members alike about their desire for a casino, and based on the results, just last week, the chamber officially endorsed the $800 million Hard Rock proposal.
“Around the state and locally, no chambers of commerce have come out publicly to support a specific casino,” she said. “For the West of the River Chamber board of directors to do this shows that they are willing to put themselves out there and take a position that’s right for economic development.”
Michael Beaudry, who chairs the chamber, said members “are excited about the potential of the Hard Rock project for its impact to our regional economy and to small business in particular. The job creation and payroll will reverberate throughout the area, alongside new tax revenues for property owners and local government.”
He noted that Hard Rock is committed to a buy-local approach to the project. To strengthen ties between a casino and the business community, the chamber is pursuing:
• Development of a small-business network to identify area businesses that may provide goods and services to the casino resort;
• Coordination on a series of vendor fairs to facilitate additional information and communication on goods and services for the gaming facility;
• Affinity programs for casino employees, by which Hard Rock will offer chamber members the opportunity to directly market their services to the anticipated 2,000-plus casino workers; and
• Promotion by Hard Rock of regional destinations, attractions, shopping districts, and hospitality venues. Those efforts might include cooperative group sales, local training for resort personnel, and marketing and advertising.
That emphasis on making sure small businesses benefit from a casino is a theme that hits home with Neffinger.
“I think small businesses are the backbone of all communities,” he said. “We’re fortunate to have some pretty large companies in West Springfield, but for our economy, employment, and the general well-being of the town, I think small businesses are the lifeblood of the community.”

Natural Appeal
Still, the mayor added, “the casino coming in to the Memorial Avenue area would bring in a whole new dynamic.” One of his missions is to make sure the town’s traditional appeals are not lost in the gaming hype.
“I think, when businesses think of relocating in Western Mass., they’re interested in what the quality of life is, what’s the education system like, what the recreation possibilities are,” he said. “We in West Springfield are surrounded by natural beauty — the Connecticut River, the Westfield River, the Holyoke mountain range, Bear Hole Reservoir … we’re pretty much surrounded by natural resources, and I’m really hoping to capitalize on those.”
To that end, “we’ve already begun to do work on Mittineague Park to fix it up, and we took tons of trash out of Bear Hole Reservoir and put a ranger up there. We want that to be a natural resource for the residents of West Springfield.”
Neffinger also considers education a key part of making West Springfield an attractive destination for businesses and families. The construction of a new, $107 million high school, set to open in 2014, is a big part of that. “We’re also working on improving our MCAS scores and our graduation rate,” he told BusinessWest. “These things are very important for people, especially young families, who are thinking of relocating.”
In addition, he said, “we’re not far from skiing, hiking, beaches, Boston, New York … we’re in a very good location.”
In other words, West Springfield has plenty to offer — whether or not Hard Rock gets the chance to light up Memorial Avenue.

Joseph Bednar can be reached at [email protected]

Green Business Sections
Gold Circuit E-Cycling Carves Out a Unique Niche

Matt Pronovost

Matt Pronovost says the mission at Gold Circuit E-Cycling is controlled growth.

Matt Pronovost calls it his “museum wall.”
It’s little more than a few wooden shelves in the back of the room cluttered with what could only be described as electronic artifacts, especially if you’re under age 40. There are a few 8-track players in the mix, two movie projectors, a ’60s-era console television (a model that sat on the living room floor), a turntable, an old Atari system, several beta camcorders and transistor radios, and maybe a half-dozen rotary telephones of various colors and shapes.
And then, there are the computers, most with brand names and model numbers that achieved fame (or infamy) but disappeared from the landscape decades ago. A Commodore 64 sits between a Digital UT102 and a Radio Shack TRS-80 Model III microcomputer. All three probably came out of the box 30 years ago, and they certainly look their age.
Pronovost said it takes something really unique to make the wall these days — like the old washboard and basin that came in a few weeks ago — partly due to the fact that he’s just about out of display space. But it’s mostly because he’d rather devote his time to the 99.9% of the stuff that comes in his door that he doesn’t even think about keeping.
This is what Gold Circuit E-Cycling is really all about.
This bin of circuit boards

This bin of circuit boards is one of many crowding the floor at Gold Circuit E-Cycling.

It’s a three-year old enterprise devoted to the recycling of computers and electronic equipment, an intriguing and fast-growing venture now occupying roughly half of one of the dozens of buildings comprising the sprawling Ludlow Mills complex. And it would seem to be the right business in the right place at the right time.
Indeed, as technology advances at a rate so rapid that it seems like a 40-inch flatscreen TV or five-year-old PC might soon be candidates for the museum wall (and there are more than a few of both on the floor waiting to be dismantled and recycled), area business owners and residents are increasingly challenged by the question of what to do with yesterday’s electronics as they acquire tomorrow’s products.
And Gold Circuit was created to provide an answer.
“Increasingly, people are realizing that there’s a solution to their problem, and it’s not the garbage can,” said Pronovost, adding that the business of e-cycling, as it’s called, is not exactly new, but it is picking up steam in the Northeast after migrating from the West Coast (as many trends do) a decade or so ago. “We’re here to help people make the responsible choice when it comes to unwanted electronic equipment.”
This venture, which recorded 25% growth in its first full year in business and will likely double its volume this year, collects or ‘demanufactures’ computers, electronics, batteries, home appliances, lawn equipment, metal furniture, copiers, printers, medical equipment, power tools, tires, fluorescent bulbs, styrofoam, pellet-fuel bags, and more, and sells the parts and material for scrap, thus keeping such items out of the waste stream.
There are charges for some products that are dropped off at the facility — anything with glass or refrigerant, for example, and tires as well — but many items can simply be left free of charge. And the company is making it even easier by staging collection events, such as one held recently at East Longmeadow High School.
Several dozen pieces of equipment arrive at the Gold Circuit facility each day, meaning the company is already essentially at full capacity in a 15,000-square-foot location it moved into just last year after outgrowing its original, 6,000-square-foot home in the Ludlow Mills complex.
When, how, and where the company next expands is a critical question, said Pronovost, adding that at present, the goal — and the challenge — is controlled, smart growth.
“I don’t want to grow too fast because expenses can really take off if you’re not careful,” he explained. “Like any business, we have to stay within ourselves and expand in a smart way.”
For this issue and its focus on green business, we look at a company that is certainly larger than the sum of all those parts amassed on the Gold Circuit floor.

Here’s the Breakdown
As he gave BusinessWest a tour of his facility, Pronovost stopped briefly at the museum wall — he tried, unsuccessfully, to find a date on that washboard — but quickly moved on to several large cardboard boxes, each destined for a vendor that would recycle the material in question and/or extricate the more valuable materials from them.
There was one for clean (as in unpainted) aluminum, a material that will fetch 65 cents a pound, he said, and another for ribbon wire, most of it from PCs. Three boxes contained low-grade, medium-grade, and high-grade circuit boards, respectively, designations that indicate that amount of gold in each one. And there were others for everything from transformers (separated by size) to plastic (one for lighter colors and one for black).
Meanwhile, there was a huge box filled with Styrofoam that was used to keep many of these products safe in their boxes. Sold by the bale, this material has a number of potential future uses, said Pronovost, especially as a composite material used in everything from furniture to picture frames.
How he came to be an expert on the future lives of such materials — and to create a business focused on e-cycling — is an intriguing story based on the most basic principles of entrepreneurship: seeing a need and creating a service to meet it.
“To be honest, I pretty much fell into this,” he explained, while retracing a career that started with work supporting those using computers, not breaking them down into component parts.
He started in what he called the “desktop-support field,” working at MassMutual for a few years before moving to a firm in Connecticut where he handled hardware setup and configuration work, as well as equipment auditing. As that company was repeatedly sold to larger corporations, with each transaction accompanied by a change in equipment, Pronovost segued into resale of the old hardware and, eventually, into selling parts and material for scrap, an operation carried out in-house.
“I had the right background to distinguish whether the parts I was looking at had value outside of scrap — whether they could be wholesaled out or brokered out, whether we tear it down or not tear it down,” he noted, adding that he quickly moved up the ranks within this division. “I made the transition from technician into sales, and was doing well with generating revenue.”
However, the Great Recession changed the equation quickly, he went on, adding that he was one of many to be laid off and forced to settle on a new career path. His was entrepreneurship.
“I decided to do it myself,” he said, with the ‘it’ being e-cycling. “I could see that there was a lot of opportunity, especially here in Western Mass.”
Elaborating, he said that there were, and still are, national outfits that would work with large corporations, such as MassMutual and Aetna, to help them scrap electronic equipment, but such operations historically haven’t had much interest in small businesses or residents. Meanwhile, some communities had collection operations (most of them pricey) at their transfer stations, he went on, but there was a definite void in service to large portions of the local market, and this was the need he set out to address with Gold Circuit.
He opened the doors in October 2010 and started small, handling the bulk of the work, including most of the demanufacturing, himself. Growth, he noted, has come through awareness — of both his company’s services and the need to seek out earth-friendly ways of dealing with yesterday’s electronic devices.

Hard-driving Entrepreneur

Employees at Gold Circuit

Employees at Gold Circuit ‘demanufacture’ a wide array of computers and electronics, with parts and materials sold as scrap.

Using an old laptop as an example, Pronovost said there is a good deal of scrap value in such devices, and his company has become adept at squeezing every cent from them.
“The screen, if it’s unbroken, can be torn down and reused,” he told BusinessWest. “The main [circuit] board probably has the most scrap value in that laptop, but the hard drive comes out to be shredded, and there’s a lithium battery — and right now, lithium is one of those commodities that’s sought after. Everything has scrap value.”
On the day BusinessWest visited the operation, there were several dozen old laptops awaiting their fate. A few of them might actually be sold to resellers if they are in very good condition, said Pronovost, as will the various pieces of equipment — computers, printers, VCRs, phones, air conditioners, toaster ovens, and more — crammed into the 20 or so large boxes on the shop floor.
This is a busy time of year — good weather inspires people to clean out their homes and businesses, apparently — and the floor is crowded with “inventory,” he went on, adding that Gold Circuit currently has several days worth of devices to demanufacture, and more comes in every day.
Pronovost has tweaked his original business plan slightly, but for the most part, the document’s projections for volume, or weight (400,000 pounds of material in 2012), revenue, growth, and employment have been on the money.
They were based on a number of factors, but mostly the incredibly fast pace of progress with computers, cell phones, and other electronic equipment, and the market for used items — or the lack thereof, as the case may be.
Indeed, he said that PCs more than seven years old, and some much younger than that, have little value other than as scrap when their owners decide to upgrade. And the same is largely true for today’s televisions.
“The older ones, those 20 or 25 years old, are still working,” said Pronovost with a laugh. “The newer HD models … they don’t work. And when they break, you generally have to replace them.”
This phenomenon is one of the many factors contributing to the company’s impressive growth rate, he continued, adding that others include everything from a lack of competition locally to strong word-of-mouth referrals, to heightened efforts in recent years to market the company.
But much of it comes down to partnerships, or working with a host of constituencies, from individual communities to area colleges and universities, to encourage responsible disposal of unwanted electronic items.
When the town of Longmeadow opened its new high school, Gold Circuit took roughly 12,000 pounds of old computers and other electronic equipment from the old one free of charge, said Pronovost, adding that another example of such partnership-building was the recent collection drive at Holyoke Community College to benefit a scholarship fund at the school. Participants paid a small fee to organizers to have everything from an old cell phone to a garage-cluttering air conditioner hauled away by Gold Circuit.
Such events are win-win-wins, said Pronovost, noting that the scholarship fund grows, the planet benefits because such items don’t wind up in area landfills, and Gold Circuit gains some invaluable exposure.
Looking ahead, he said the company, which now has four full-time employees, and several part-timers, will continue its efforts to chart steady but controlled growth.

Parting Thoughts
Pronovost said his museum wall often generates interest and conversation.
“People will say, ‘holy smokes, a Commodore 64 — I had one of those back in…,’ and they start adding up in the years,” he said, adding quickly that, while nostalgia is fine, it’s not what this business is all about.
Instead, it’s about meeting a growing need among area businesses and communities, and a desire to do the right thing when it comes to disposing of old equipment, styrofoam, and more.
“People are learning … they’re understanding that you can’t just throw things like this away,” he said, sweeping his hand across the shop floor. “And we’ve become an answer to their problem.”

George O’Brien can be reached at [email protected]

Briefcase Departments

Grants Awarded for Municipal Water Projects
BOSTON — The Mass. Water Pollution Abatement Trust (MWPAT) announced the approval of more than $6 million in need-based principal-forgiveness grants on 20 water infrastructure loans from across the state. “This money will deliver relief to communities struggling to finance key water projects that provide for the health and well-being of their citizens,” said state Treasurer Steven Grossman, who serves as the chairman of the MWPAT. “This funding frees up additional capital to go to other important local priorities, such as transportation infrastructure, education, and public safety.” The 20 grants, administered by the state and funded by the federal government, were awarded on a competitive basis to cities and towns most in need of financial assistance associated with loan payments to the MWPAT. Because of the reduction of loan principal funded by the grants, impacted communities will see their biannual loan payments reduced, freeing up capital for other local needs. The loans were originated to pay for municipal water projects such as upgrades to water-treatment facilities and stormwater and sewer improvement projects. “As Governor Patrick has so clearly pointed out, the Commonwealth has a significant and expensive backlog of water infrastructure projects to address in order to fully protect the environment and the public health,” said Commissioner Kenneth Kimmell of the Mass. Department of Environmental Protection, who serves on the MWPAT board. “I am pleased to join our trust partners to provide this assistance to these communities to make their projects more affordable.” The $6 million in loan forgiveness is associated with a total original loan amount of $98 million, an overall principal reduction of 6%. “As the executive director of the trust, I am excited to announce $6 million in principal forgiveness to these communities that have shown a strong commitment to improving their water infrastructure,” said Sue Perez. “This award represents our third year providing principal forgiveness, and to date we have awarded roughly $33 million in principal forgiveness under this program.” The MWPAT lends financial assistance to the Commonwealth under the State Revolving Fund program by providing subsidized loans to cities and towns for water-infrastructure development. Since its establishment in 1989, the trust has loaned approximately $6 billion to improve and maintain the quality of water in the Commonwealth. An estimated 97% of Massachusetts’ citizens have benefited from the MWPAT’s financial assistance.

Massachusetts Economy Shows Positive Signs
BOSTON — After a period of lackluster economic growth, the Massachusetts economy sprang to life in the first three months of this year as hiring increased, incomes rose, and consumer spending rebounded, according to a new report by the University of Massachusetts and the Federal Reserve Bank of Boston. The state’s economy grew at an annual rate of 3.9% between January and March, accelerating from 2.4% at the end of last year and outpacing the national economic growth rate of 2.5% during the three-month period. The state has recovered from the Great Recession faster than the nation as a whole, regaining as of January all the jobs lost in the downturn even as U.S. employment remains millions of jobs below the pre-recession peak. That has helped boost incomes here, which have been further supported by the strong stock market and rising home values, leading to stronger consumer spending. In fact, spending on discretionary purchases, including TVs, furniture, appliances, and motor vehicles, grew at an annual rate of 11.6%. The Massachusetts economy seems to have responded to the resolution of November’s elections and the ensuing budget battles and ‘fiscal cliff,’ but the UMass report noted that risks to the economy remain. Specifically, Massachusetts is particularly vulnerable to across-the-board sequestration cuts because the state receives billions annually in federal defense and research spending. The spending cuts, which took effect in March, have already led to slower hiring in many of the state’s key industries, including healthcare, higher education, and research and development.

Three Local Agencies Benefit from MMS Grants
WALTHAM — Three agencies in Western Mass. Are among 12 to receive grants from the Mass. Medical Society & Alliance Charitable Foundation as part of its 2013 allocations. The 12 grants total $160,000 and will help to support health and medical services that address vision care, healthy lifestyles, asthma reduction, prevention and screening services, and primary care for the uninsured. Eight agencies are receiving grants for the first time, while four have previously been awarded grants from the foundation. Community Health Programs of Great Barrington was awarded $35,000 to outfit a medical van with equipment to provide a mobile ophthalmic office that will offer patients of all ages comprehensive screening, diagnosis, and treatment for  eye diseases. The van will focus care on populations that are disadvantaged due to mobility, health, or economic reasons. The agency serves people throughout Berkshire County. Amherst Survival Center Free Medical Clinic was awarded $15,000 to hire a part-time clinic manager to oversee expansion of the agency’s operation.  The clinic serves more than 500 individuals in Hampshire and Franklin counties. This is the second grant to the agency from the foundation; it previously received $15,000 in 2011. Greater Westfield Free Health Services received $5,000 to support free health services for residents in the Westfield area who are uninsured or underinsured. Other recipients in Massachusetts include Heywood Hospital, Gardner, $20,000; UMass Memorial Medical Center, Worcester, $15,000; Girls Inc., Worcester, $10,000; Metro West Free Medical Program, Sudbury, $10,000; Children’s Health Care and Nutritional Goals through Education, Shrewsbury, $10,000; Restoring Sight International, West Roxbury, $15,000; the Family Van Program, Roxbury, $10,000; Upham’s Corner Health Center, Dorchester, $10,000; and the Sharewood Project, Malden, $5,000. The foundation is a supporting organization of the Mass. Medical Society, the statewide association of physicians, and the MMS Alliance is the organization of physicians’ spouses committed to promoting good health among the citizens of Massachusetts. The foundation’s mission is to support the charitable and educational activities of the society and alliance and address issues affecting the health, benefit, and welfare of the community.

Springfield Museums Receives Prestigious Accreditation
SPRINGFIELD — The Springfield Museums recently announced that, after a two-year process, the nonprofit organization has received prestigious accreditation by the American Alliance of Museums (AAM), the highest national recognition for a museum or museum consortium. Of the nation’s estimated 17,500 museums, only about 1,000 (or 6%) are currently accredited. Accreditation places the Springfield Museums in the same class as institutions like the Smithsonian, the American Museum of Natural History, the Museum of Fine Art in Boston, and the Clark Art Institute in Williamstown. To be accredited signifies a museum meets or exceeds the standards and best practices of the museum field in all aspects of its operation — collections stewardship, community engagement, financial stability, governance, and security. Accreditation is often a prerequisite for, or integral to, loans of objects from other museums nationally and internationally, funding from many philanthropies and foundations, and support from local, municipal, and state government. Longtime private donors, elected officials, and museums staff and board members joined in a celebratory announcement at the Michele & Donald D’Amour Museum of Fine Arts. According to Holly Smith-Bove, museums president, the museums draw a quarter-million visitors each year and add an estimated $28 million per year in tourism dollars into the region. The campus off State and Chestnut streets includes the Museum of Fine Arts, the George Walter Vincent Smith Art Museum, the Springfield Science Museum, the Connecticut Valley Historical Museum, the Museum of Springfield History, and the Dr. Seuss National Memorial Sculpture Garden. Accredited museums encompass the breadth of America’s museums that celebrate and display all forms of art, history, historic sites, natural history, science and technology centers, public and botanic gardens, zoos, and aquariums.

Construction Industry Loses 6,000 Jobs in April
The U.S. construction industry lost 6,000 jobs in April, according to the May 3 employment report by the U.S. Department of Labor, but the unemployment rate decreased to 13.2%, down from 14.7% in March and 14.5% in April 2012. Year over year, the construction industry has added 154,000 jobs, or 1.7%. The decline in unemployment is likely due to seasonality rather than meaningful improvement in underlying construction labor market conditions. The non-residential building sector lost 4,800 jobs for the month, but has added 17,700, or 2.7%, over the last year. The residential building sector added 6,200 jobs in April and has added 14,400 jobs, or 2.5%, year over year. Non-residential specialty trade contractor employment fell by 11,100 jobs in April compared to March, but is still up by 39,000 jobs, or 1.9%, compared to the same time last year. Residential specialty trade contractors added 7,100 jobs for the month and have added 69,300 jobs, or 4.7%, since April 2012. Heavy and civil engineering construction employment slipped by 3,800 jobs in April, but is up by 13,400 jobs, or 1.5%, over the last 12 months. Across all industries, the nation added 165,000 jobs, with the private sector expanding by 176,000 jobs and the public sector shrinking by 11,000 jobs. According to the Bureau of Labor Statistics’ household survey, the national unemployment rate fell to 7.5% in April, down from 7.6% in March. “Today’s report highlights the fact that different forms of economic activity require different levels of confidence,” said ABC Chief Economist Anirban Basu. “Leading the way in job creation in April were segments such as leisure/hospitality and retail trade. It doesn’t take that much confidence to take a short cruise or eat at a restaurant; however, it takes a considerable level of confidence to move forward with a significant construction project, and that level of confidence is still lacking. “The recent construction spending report issued by the U.S. Census Bureau showed that both public and private nonresidential construction were down for the month, indicating that sustained momentum continues to elude the industry.” Today’s employment report reinforces the notion that sustained recovery remains elusive,” Basu said. “While non-residential construction employment is up by nearly 56,700 jobs on a year-over-year basis, the segment shed 15,900 positions in April. Further declines are possible in the near term given weak construction spending dynamics and the anticipated impacts of sequestration on construction starts.”

Departments People on the Move

Royal LLP recently announced the addition of Tanzania Cannon-Eckerle to the Northampton-based management-side only labor and employment law firm. Cannon-Eckerle will focus her practice in labor law and complex employment litigation, counseling companies on the multitude of state and federal employment laws impacting them, including employment discrimination and harassment, wage and hour, disability and leave, workplace safety, OSHA, affirmative action, and contract negotiations. Cannon-Eckerle is a graduate of Indiana University School of Journalism and Southern Illinois School of Law.
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American International College announced that Heather Cahill has been promoted to Vice President for Institutional Advancement. Cahill has served as the executive director for the same department for the past three years, where she organized fund-raising and alumni operations.
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The Center for Human Development (CHD) has appointed Kirk Woodring, a licensed social worker, as Vice President of Clinical Services. Woodring will oversee several programs, including CHD’s outpatient behavioral-health clinics, the Institutes of Dynamic Living, early intervention, in-home therapy, and other program clinical services.
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FieldEddy Insurance announced the appointment of Lauren Lanza as an Account Executive for employee benefits. Lanza brings more than six years experience as a sale account executive or a Fortune 500 employee benefits provider, and as an associate underwriter for an insurance agency network.
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North Brookfield Savings Bank recently announced the appointment of Bryan Kaye as Vice President and Commercial Loan Officer. Formerly a commercial loan officer at Freedom Credit Union, Kaye holds a bachelor’s degree from Bluffton University and Omega Performance Group’s CU Business Lending School, and is involved in the Western Mass. Chapter of SCORE.
•••••
Jessica Lapinski recently joined Kathy Borawski’s real-estate team at RE/MAX Hill & Valley in Northampton. Lapinski, formerly an agent with Trailside Realty, has been a realtor in the Pioneer Valley for 12 years.

Education Sections
College Admissions Officials Face Host of New Challenges

Kevin Kelly

Kevin Kelly says a student’s grades and the difficulty of his or her high-school courses are the best predictors of college success.

Despite popular opinion that one exists, there is simply no magic formula for colleges and universities to use when deciding which candidates to admit, decline, or put on a waiting list.
Instead, there is a mix of quantitative and qualitative analysis, say those who work in the field known as enrollment management, and, in the end, a search for the right fit, however it is defined.
“It takes a combination of good grades and good courses, and the best predictor of future success is the degree of success students have had in high school,” said Kevin Kelly, director of undergraduate admissions at UMass Amherst. “We are looking for students who have taken the most challenging curriculum they can find and done well with it.”
And though this usually grueling process has always been like this, some changes in the procedures, coupled with a rise in student and parental expectations, have transformed the climate and created an atmosphere that is challenging for everyone involved.
Teens in high school are exploring options as early as their freshman year because taking the right courses can result in acceptance at a number of quality institutions.
“We’re seeing more and more families who start the process earlier,” said Charles Pollack, vice president for enrollment management at Western New England University. “We’re giving tours to high-school freshmen and holding open houses for juniors.”
Mary DeAngelo, director of enrollment at Springfield College, concurs. She said the school recently held seven programs for juniors in three weeks. “The whole process is accelerated as students narrow down the schools they’re interested in,” she noted.
However, even when students who have been accepted attend open houses, they are asking questions about job opportunities, internships, and experiential learning that will lead to employment at the end of their college career. “Families are much more proactive in seeking out information,” she went on.
During a recent event at Springfield College, a panel of graduates addressed potential freshmen and spoke about what the school had done to help them transition into careers. “Believe me, people were paying attention,” DeAngelo told BusinessWest. “In the past, students weren’t worried about the end of the experience, but now they are definitely thinking about it before they even start.”
Julie Richardson, dean of admissions and financial aid at Hampshire College, has been in the field for more than 20 years and agrees there has been a climate change. “I love helping students figure out how to get into the right college and pay for it. But students are applying to more colleges than ever before,” she said, adding that many have submitted applications to 10 or more colleges. As a result, students with good grades are often accepted at a number of institutions, which can make it confusing and difficult to decide where they really want to go.
Kelly said UMass Amherst set a new record with almost 36,500 applicants this year, and the numbers have been rising since 2006. As a result, the review process has become a double-edged sword, as admission officials cull through a growing tide of applications, then find themselves having to compete for candidates from the 98% of 18.6 million high-school graduates who have applied or will be applying to institutions of higher learning next fall. And until a student actually begins classes, nothing can be taken for granted.
“Some students go to an orientation during the summer, then change their mind about the college they have chosen,” Pollack said, adding that WNEU receives late applications as a result and admits students at the last minute whenever possible.
DeAngelo said that’s why it’s important for high-school students and their families to visit schools and talk to people on campus in advance to determine the best fit from an academic, co-curricular, and financial standpoint.

Numbers Game

Charles Pollack

Charles Pollack says he’s seeing families start the college-application process earlier than ever before.

The Common Application for Undergraduate College Admission, first established in 1975, provides a standardized form for students, and is used today by close to 500 colleges across the country as well as two international institutions. And, thanks to the Internet, it has become easier than ever for students to apply to a multitude of schools using this format.
Last year almost 2.5 million applications were submitted online, and many colleges depend exclusively on the Common Application.
But it creates an overwhelming amount of work, because students’ credentials must be examined on an individual basis. “The Common Application makes it so easy for students to apply that it can be difficult to tell who has the most interest in your college,” said DeAngelo, adding that Springfield College does not use the format.
Last year, WNEU had 6,400 applicants and admitted 906 students. Pollack said the institution’s name change — from college to university — yielded an increase in applicants from across the country as well as overseas. “At one time, our students were predominantly from the Northeast. But now they are from states ranging from Florida to Hawaii.”
In 2005, UMass Amherst admitted 80% of applicants, while last year the number shrunk to 63%. “We are being more selective,” Kelly said. “But we did admit 1,500 more students for the fall of 2013 than last year.”
When asked how the school goes about deciding which students to admit, Kelly said the process is both an art and a science, with some math thrown in as well.
Indeed, many schools recalculate a student’s grade point average and use only college-preparatory courses to determine that number, although honors and advanced-placement courses are given extra weight.
“We’re looking for trends such as whether the student started out well, then tapered off in their senior year,” Kelly said.
It’s also critical for students to have taken the necessary prerequisites for their majors. “But there is no rating system; we judge each student on their own merits, although there are differences in high schools,” he explained, adding that, even though he and other officials look at extracurricular activities, academic qualifications are far more important than anything done outside of the classroom.
SAT and ACT scores are also considered, but many schools don’t pay attention to the written portion of the exam because it is subjective and doesn’t have a direct correlation to college writing assignments.
DeAngelo said Springfield College considers how much students know about their school, but their personal statement and whether they have demonstrated leadership in high school can be a deciding factor. “Many of our applicants have a pretty strong record of community service, which is important to us because we have a lot of opportunities for students to continue that work. Our small community makes it easy for students to get involved in clubs and organizations, and we have several hundred who are volunteering in the community.”
Personal recommendations also play heavily into the equation at Springfield College, especially in physical therapy, occupational therapy, and physican assistant programs, where spots are very limited. “We have a lot of students who are very strong academically, so we need other factors to look at,” DeAngelo said, noting that interest continues to grow in all health-related professions due to the future job outlook.
But, in the end, it all boils down to grades.
“Participation in clubs, sports, and co-curricular activities makes a student well-rounded, and we like to see it, but it is secondary to their academic record. We analyze every transcript, but only look at college-preparatory classes,” Pollack said. “Many students don’t understand what our coursework will involve, and attending college is first and foremost an academic pursuit, although our students are also exposed to leadership skills to prepare them for graduate school or the world of work.”

Stiff Competition
Hampshire College is one of the many schools using the Common Application. “It makes it so much easier for students. The college search process is fraught with enough tough decisions and stress,” Richardson said. However, Hampshire asks students to submit an additional page that contains information about recent books they have read, other campuses they have visited, and why they believe Hampshire is a good fit for them.
This is critical since the school doesn’t have grades or majors, but encourages interdisciplinary work. “We want to make sure they know about our model and have taken steps to research us. We’re looking for students who are inquisitive and articulate, and we want to know what they are interested in,” she said. “A lot of students we admit are interested in sustainability or want to make the world a better place.”
Although Hampshire admits two out of every three applicants, last year it set a record with a 20% increase in applications, which has continued this year.
And despite the fact that the Common Application contributes to the growing tide of applicants, local admission officials are quick to cite the merits of their schools as a contributing factor.
Pollack said the number of students WNEU admits is carefully calculated due to space restrictions, because it doesn’t want more than two students in a dorm room, and most live on campus.
“But we also pride ourselves on personal attention and don’t have any teaching assistants, even in our labs. It is not our intention to ever become a large institution,” he told BusinessWest. However, he points with pride to the school’s new professional degree programs in pharmacy and civil engineering, which account for the largest recent growth areas.
“And there is more and more recognition of the depth and breadth of our programs, which are attracting students from overseas,” he continued, adding that there is strong interest in the business program, which has attained accreditation from the Association to Advance Collegiate Schools of Business, granted to fewer than 5% of business programs.
In some schools, such as UMass Amherst, students may not be admitted to their first program choice, especially in the fields of management, nursing, or engineering. But many are offered another track, even though they may not be able to switch to their desired major within a given time period.
Still, Kelly said every application is carefully reviewed, and every candidate has to submit at least one letter of recommendation and an essay. “There is no pre-screening done by the computer. We read them all,” he said, adding that the University subscribes to what many schools call a ‘holistic’ review process.
State colleges and universities can cost less than private institutions, but Kelly said it’s not the only reason students want to enter UMass. “It’s our academic reputation, the quality of our majors, and the overall value we offer.”
But any student’s decision about which school to attend can be tenuous. “In the end, it becomes like the tiger chasing its tail, because the more students a school tries to bring in, the more students they have with the possibility to go elsewhere,” Richardson said.

Future Outlook
The competition to attract high-quality students has intensified in recent years, and the Internet will continue to allow families to research institutions and their requirements more carefully than they ever did in the past.
“Students are trying to get a leg up on what they need to do to become competitive, and they want to make certain that they are making solid choices,” DeAngelo said.
In the end, however, it’s all about the right fit.
“The most important thing families can do is to be really judicious about the schools their children apply to,” Richardson said. “They should stretch their dreams and apply to the schools that really meet their needs.”

Law Sections
Morrison Mahoney Adds Estate-planning Attorney to Its Roster

John Shea, right, consulting here with Brad Martin

John Shea, right, consulting here with Brad Martin, brings another specialty to Morrison Mahoney LLP.

When the Springfield office of Morrison Mahoney LLP added business-law specialist Brad Martin Jr. in 2006, the firm, which focused on litigation, and especially medical-malpractice defense and other work involving the healthcare industry, took a step closer to providing what partner Dennis Anti called “one-stop shopping.”
Elaborating, Anti said that the addition of Martin enabled the firm to assist clients not only with medical-malpractice cases, but also with myriad business issues, ranging from corporate filings to the addition of a shareholder within a physician group; from employment-law matters to regulatory issues.
But there was still one more big step the firm needed to take if it was to effectively serve all the needs of its clients, said Anti, citing the broad realm of estate planning and asset protection, which are critical matters for physicians.
And that gap was closed with the recent addition of John Shea, who concentrates his work in estate planning, wills, durable powers of attorney, healthcare proxies, revocable and irrevocable trusts, and related services.
“This is a logical extension for us — asset protection is very important for people in the medical field, and estate planning is important for everyone,” said Anti. “We’ve always had to outsource this to other firms because we haven’t had the expertise to do it.”
And much of that outsourcing went to Shea, who has spent the bulk of his career in private practice, with offices on Yarmouth on Cape Cod. He told BusinessWest that, while his arrival at Morrison Mahoney brings benefits for the firm, it should help him build his book of business as well.
“The resources and the reach of the firm are obvious advantages for me,” he said, citing its many locations and a wide service area. “The firm has a very large client base that we can pull [estate-planning] work from.”
Retracing the steps that led to the firm’s latest addition, Anti explained that, as the frequency of requests for asset-protection and estate-planning services increased, discussions about expanding the staff and bringing such work in house intensified. And there have been many inquiries about such services, he noted.
“Many of these come from younger physicians who have never been sued before,” he explained, referring to medical-malpractice cases that come to the firm. “After we discuss the case, the first question they ask me is, ‘how can I protect my assets going forward?’ This has been a huge wake-up call for many of these physicians.
“And for years, we would tell them, ‘yes, there is a way to protect your assets and develop an estate plan,’ which is a good idea anyway, irrespective of whether there’s been a medical-malpractice claim,” he went on. “But until now, we’ve had to outsource that work.”
He related the specific story of an individual who was sued for medical malpractice as a resident. “She called me and said, ‘I know this happened to me as a resident, and I’m sure it’s going to happen to me again — that’s what the statistics regarding my specialty tell me — and I have a young family, and I want to be set up now.”
When asked about what the addition of Shea means for the firm, which has more than 160 attorneys in nine offices, Martin said it obviously brings the practice much closer to that one-stop shopping designation — divorce is essentially the only service it doesn’t provide, and it has no intention of entering that realm — that many clients are looking for.
“Many of the physician groups like the fact that it’s all contained in one firm,” he said. “And it’s especially attractive to people just launching a new business; one firm can handle all the aspects of them getting started.”
Meanwhile, this most recent addition gives the firm direct access to a growth area laden with potential.
Indeed, in addition to younger professionals in healthcare realizing the importance of estate planning and asset protection, there are many older physicians now approaching retirement who have not fully addressed matters concerning their estate, said Martin.
“People would be surprised at the number of individuals who don’t have anything,” he noted, “or don’t have anything close to what they really need.”
To capitalize on this potential, the firm intends to be, in a word, proactive about this latest addition to its suite of services, as well as the full package it offers, Anti told BusinessWest.
Elaborating, Anti said that many young professionals in the healthcare field will wait until something happens — like that first medical-malpractice suit against them — to realize the importance of asset protection and estate planning. The firm will be more outspoken about not waiting for such incidents, he went on.
“We have a lot of young professionals as clients — new doctors, for instance — who are just starting out and are really focused on doing a great job and building their practice,” he said. “It is critical that we help them protect their current assets, as well as future earnings, through proper estate planning. It might not be on their radar screen, but we intend to be proactive with them.”

— George O’Brien

Law Sections
Like the Iceman, Jan. 1, 2014 — a Big Day for Obamacare — Cometh

ROSEMARY J. NEVINS

Rosemary J. Nevins

By now, employers have more likely than not been inundated with reminders that, come Jan. 1, 2014, the shared-responsibility provisions,” a/k/a the ‘play or pay mandate’ under the Patient Protection Affordable Care Act, a/k/a ‘Obamacare,’ go into effect for applicable large employers.
The law defines ‘applicable large employers’ as those employers who have employed 50 or more full-time employees (employees who on average work at least 30 hours per week during a month, or 130 hours per month) during the preceding calendar year, which means this year (2013).
While the number of full-time employees may be readily calculated by many employers, the determination of employer status is somewhat more complicated for those employers who, for example, employ several part-time employees (whose aggregate number of hours worked may render them ‘full-time equivalents’) or are part of a controlled group as defined under the Internal Revenue Code and, as a result, may cross the line between being considered a small employer and being classified as an applicable large employer. That determination is germane to determining whether the above mandate applies to them.
Equally important for applicable large employers is the need to decide whether they want to play or pay, and understanding the implications and results of such decisions. Because the law has been implemented prior to the publication of final-rule notices by the federal agencies responsible for overseeing the implementation of the law (e.g., the IRS), employers are reminded that they may rely on the interim regulations for the year 2014 for guidance. Those regulations are complicated and include transitional as well as ‘safe-harbor’ provisions.
Employers need to be aware of which penalties apply and, more importantly, how to assess the cost of such penalties to determine whether it is less expensive to offer coverage as defined by the law or pay the penalties.
Adherence to the law also necessitates employers to review existing employer-sponsored health plans to determine whether they comply with the law’s affordability and minimum-value requirements, should employers decide to play. In addition, self-funded plans, multi-employer plans, and grandfathered plans are among the types of coverage plans employers need to review to determine if and whether the law requires any changes to those plans.
Finally, an employer who decides to play and use some of the applicable safe harbors relative to determining and treating employee status with regard to ongoing, new non-variable-hour, variable-hour, and seasonal employees, along with issues such as breaks in service, should be preparing now not only with regard to training, but also by consulting with those whose services are relevant to various portions of the act, such as healthcare issuers and/or providers, counsel, accountants, etc.
Royal LLP is conducting two practical workshops on June 6 and June 13 designed to provide employers with an interactive, step-by-step analysis of Obamacare, including what employers must be doing now to obtain coverage under the safe-harbor provisions and to prepare for the mandates. For more information about the workshops, contact Ann-Marie Marcil at [email protected].

Rosemary J. Nevins, Esq. specializes exclusively in management-side labor and employment law at Royal LLP, a woman-owned, SOMWBA-certified, boutique, management-side labor and employment law firm; (413) 586-2288; [email protected]

Features
Older Unemployed Individuals Find Themselves in the Fight of Their Lives

Cheryl Adamson

Cheryl Adamson says she’s encountered a good deal of bias when it comes to her age, one of the reasons she’s been unable to find a full-time job for nearly two years.

When Cheryl Adamson found herself unemployed after the Hampden House retirement community closed its doors in September, 2011, she never believed that 20 months later she would be crossing her fingers and literally praying for a second part-time job she’s interviewed for, which coupled with an enjoyable gig she has peddling dog food, still won’t pay her anything close to what she was making as a chef manager.
But that is reality for this 55-year old Chicopee resident, and for countless others like her who find themselves trapped in a situation described as unprecedented by those who study labor markets and the trends now shaping them.
In a nutshell, jobs that were lost during the Great Recession and the years that followed are simply not being replaced at anything approaching the same pace. And while all age groups are affected by this development known as long-term unemployment, it is older workers, especially those 55 and over, who often find themselves on the outside looking in and, in some extreme cases, wondering if they will ever work again.
Older workers downsized or impacted by business closures face a number of challenges as they try to re-enter the job market, said Andrew Sum, director of Northeastern University’s Center for Labor Market Studies, who listed everything from a lack of needed skills, especially with information technology, to the simple fact that people have been out of work for months or even years, leaving a resume gap that intimidates employers, who see such individuals as damaged goods.
“The longer one is unemployed, the harder it is to get a job,” he said, “and the more likely it is that individuals will simply give up and leave the labor force.”
Adamson has seen all of this, up close, personal, and repeatedly. She first used the word ‘prejudicial’ to describe what was going on, but then settled on ‘biased.’
“Some people would blatantly ask me how old I was, either in interviews or over the phone,” she told BusinessWest “And I’ve heard a lot of people say I’m ‘overqualified,’ which I interpret to mean ‘you’re too old.’”
Tom Thebodo can certainly relate.
Steve Trueman

Steve Trueman says many older unemployed individuals are, or soon will be, in what he called “survival mode.”

Steve Trueman says many older unemployed individuals are, or soon will be, in what he called “survival mode.”
[/caption]He took what he considered to be a reasonable gamble in January 2011, when Home Depot decided it would take over management of its warehouse operation in Westfield from the company it had hired to handle that assignment, Exel Logistics. Home Depot offered the workers an opportunity to keep their jobs, but at roughly two-thirds the salaries they were earning; Thebodo said ‘thanks, but no thanks.’
Nearly 26 months later, and close to a year after his unemployment benefits ran out, he is still looking for work and having serious doubts about whether he will soon get anything paying close to what he was making before.
“I haven’t had many bites at all — I’ve probably applied for 300 jobs and I think I’ve had two interviews,” he said, adding that one was for a seasonal, part-time position at Six Flags. “I want to work, and I think can outwork these younger guys that are getting the jobs, even though they aren’t very experienced, because they’re cheaper to hire. I’m just not getting any chances.”
Steve Trueman, director of Adult Workforce Programs for the Regional Employment Board of Hampden County, said many older workers like Adamson and Thebodo are, or soon will be, in what he called “survival mode,” which is certainly not how they intended to live in the years leading up to their retirement.
“People have lost their homes, they’ve lost their nest eggs, and they’re adjusting their lifestyles,” he said, adding that some are taking positions they are seriously overqualified for, and at a fraction of their former salary — if they can find anything at all — just to get by. “They’ve gone off the path of where they were headed; their plans have been derailed.”
And perhaps the most unsettling news for this constituency is that there is little, if anything, to indicate that conditions are going to improve any time soon. In fact, things could actually get worse before they get better.
Companies that downsized, or rightsized, during the Great Recession have found new ways to do the same, or more, with fewer people, said Trueman, adding that many employers are showing little desire to ramp back up to pre-downturn staffing levels. Meanwhile, looming sequestration could impact the situation in many ways — from eliminating many jobs, and thus creating even more competition for openings, to cutting off funding for programs to retrain people for new opportunities.
For this issue, BusinessWest turns the spotlight on long-term unemployment, especially as it impacts older workers. Not long ago, they were moving toward retirement with a plan; now those plans have changed, and they have to navigate what most would describe as uncharted waters to get back into the workforce.

Age-old Problem
Elizabeth Veillette’s business card declares that she is a “mature worker specialist” with CareerPoint, the one-stop career center based in Holyoke.
And she says that makes her quite unique in the field of employment services. “I’m not aware of anyone else who does what I do, not only in this state but nationally,” she said, adding that the grant-funded position involves work assisting and counseling older workers as they seek employment.
Many of these individuals are facing long-term unemployment (a technical term that means someone’s been looking for work for more than a year), she went on, adding that she works one-on-one with such clients, and also in workshops, such as one titled ‘Job Search Strategies for Mature Workers,’ and job-club activities.
Veillette was leading a job-club session just prior to talking with BusinessWest. This is a group of roughly 20 people, many of them facing similar challenges — and emotions — as they try to rejoin the workforce.
“A lot of them are only a few years from retirement, so they’re going through a lot of shock and a lot of grief,” she explained. “There’s a fair amount of working through the emotional piece to be able to pull yourself together enough to go and look for another job.”
She said many of those she works with have been with the same company for decades, have specialized skills that might make it difficult to get into another field, especially in the ultra-competitive environment that exists today, and little, if any job-search experience.
And these are just some of the challenges they face, she noted, adding that she’s noticed what she would have to call some bias against older workers.

Andrew Sum

Andrew Sum says that the longer one has been unemployed, the harder it is to find work.

“There is some actual age discrimination that is taking place,” she said. “In a lot of cases, what people (employers) are saying, but without actually saying it, is ‘you’ve been doing this a long time, you’re too expensive, I can’t afford you, so I’m going to call you overqualified.’”
And there are many more people hearing such words than at any time in the past three decades, or since the Bureau of Labor Statistics started keeping such stats, said Sum, co-author of a report issued two years ago titled The Dislocation Experiences and Labor Market Adjustment Problems of America’s Older Workers During the Great Recession of 2007-2009.
While preparing it, he discovered that the numbers of people in this state who had been unemployed for more than a year, and especially older workers, were much higher than he thought. A decade or so ago, the mean duration of unemployment among older workers in the state was 16 weeks, he said, noting that over the past 18 months, that number has risen to 50 weeks for those ages 55 to 64 and 44 for those over 65.
“We’ve never seen unemployment duration this high for older workers,” he told BusinessWest, “or for anyone else, for that matter.”
Those sentiments are backed up by Labor Department statistics showing that the number of people age 45 and older who have been jobless for more than a year has quadrupled since 2007, accounting for more than half of the 3.5 million Americans who have been unemployed long term.
Slicing through such numbers, Sum qualified the situation by saying that while there are more older individuals (over 55) working today, by percentage, than any other age group, it is more difficult for those in that demographic who are unemployed to rejoin the workforce.
“For older workers, when they’re unemployed for long periods of time, their recall rate gets to be pretty low,” he explained, adding that the longer one is out, the more this situation becomes exacerbated.

Idle Thoughts
People like Thebodo and Adamson don’t need statistics from the Labor Department, or Sum’s report, to tell them they’re facing something unusual — and extremely frustrating as they try to re-enter the workforce.
“I’m hanging in there, but it’s getting very depressing,” said Thebodo, adding that he is not yet ready to join the ranks of those who have simply given up in their search and thus technically, and ironically, are no longer classified as unemployed. “I’d just like someone to give me a chance to show what I can do, but no one will do that.”
These sentiments echo those of a woman (who asked to be identified only as ‘Debbie’) who has been out of work for the better part of three years now.
A former clerical worker for a municipality she also chose not to name, Debbie said she’s been hindered in her efforts to find a job by everything from what she considers to be average (at best) computer skills to the fact that she doesn’t speak Spanish.
“Everyone wants you to be bilingual today,” she said, using ‘everyone’ to describe those who have sat across the interview table from her.
Debbie said she’s had several temp jobs, none of which turned into anything permanent, and worked for a few weeks to get the Hobby Lobby store up and running at the Holyoke Mall, but was not among the 40 people ultimately hired by the company.
A member of a job club at FutureWorks, the one-stop career center based in Springfield, she said she tries to remain upbeat — “I always look at the glass at being half full” — and benefits from being around others who are facing the same challenges she is.
“I kind of feel like I’m lost and alone in this — you keep saying to yourself, ‘why can’t I find anything,’” she said. “When there’s other people in the same situation, it makes you feel better  … you have to keep your chin up.”
Conrad Rogowski, manager of Career Services at FutureWorks, said such a positive attitude is critical for all those seeking to re-enter the workforce, but especially mature workers who have some inherent advantages over many younger applicants, he believes, listing everything from experience in a given field to a strong work ethic — and must exploit them.
“Age can certainly be a disadvantage, but it can also be an advantage — it depends on the individual,” said Rogowski, who works with a number of mature workers. “For the 55-plus workers, there are factors that can work for them or work against them. One of the big questions they face concerns whether they’ve kept up with technology, which is critical to their ability to be able to market themselves when they’re out of work.”
“Sometimes, people fall behind on technology, other times, the company they were working for falls behind,” he continued, adding that FutureWorks encourages such people to get caught up, not only with equipment and software, but also with the social media vehicles available to market themselves, such as LinkedIn and Twitter.
Meanwhile, he said, many older workers have to change their mindset somewhat and focus on what employers need, and not what they need as they pursue employment.
“At one time, a number of years ago, the focus was on ‘what’s in this for me?’” he noted. “But in this job market, what people have to focus on is the needs of the employer. And this is where some of the advantages of the mature worker come in.
“In a tough job market, employers are looking for a variety of things,” he went on. “They’re looking for longevity in jobs and depth in a work history; they’re looking for people skills, communication skills, maturity, productivity, and a work ethic, and these are all things that a mature worker can demonstrate on their resume, and can certainly demonstrate once they have an opportunity to get in front of an employer at an interview.”

The Bottom Line
Adamson told BusinessWest that she’s been trying to stress her experience, what she can do for an employer, and how she can be as asset — even if she is overqualified for the job in question — but just hasn’t been given any chances to prove herself.
When asked to describe what that’s been like, she summoned the word ‘humbling,’ while noting that her joblessness has come at a time of other losses in her life, including her fiancée, who died a few years ago, so she keeps things in perspective.
“You have to really stay positive about things,” she said, noting that the aforementioned part-time job she’s seeking isn’t anything approaching management. But it is something she needs on so many levels — from the financial to the standpoint of self-esteem.
Such is life when one is in survival mode — and that is the unfortunate reality for many older individuals who thought the home stretch to retirement would be much different.

George O’Brien can be reached at [email protected]

Features
Springfield Eyes Bright Future, Casino or Not

SpringfieldProfilesMAPDomenic Sarno has been talking about a potential Springfield casino for a long time. But that’s not all he wants to talk about.
“We’ve handled the casino as a potentially $1 billion economic-development project with a gaming component,” the Springfield mayor said of the dual proposals put forth by MGM Resorts International and Penn National Gaming, “but we’re moving on three or four different other fronts besides the casino.”
Three or four would be a gross understatement. Those fronts range from ongoing tornado recovery to Union Station, which will begin its $78 million transformation to a multi-use transportation hub later this year; from the new data center at the former Technical High School — one of the final pieces of an ongoing revitalization of the State Street corridor — to continued efforts to draw more businesses and foot traffic downtown, among many other efforts.

Mayor Domenic Sarno

Mayor Domenic Sarno says efforts to locate a casino in the city constitute one of many economic-development related initiatives taking place in Springfield.

“So it’s more than just the casino,” Sarno said, before admitting he certainly welcomes such a huge development and the $15 million to $20 million in property-tax revenue that might accompany it  — not to mention thousands of jobs and, hopefully, opportunities for local businesses to partner with the casino developer, if Springfield does indeed land the project. “Both entities understand that they have to connect to the fabric of the city.”
Jeff Ciuffreda has become a bit weary of the casino issue as well. As executive director of the Affiliated Chambers of Commerce of Greater Springfield, he knew any stand taken by the ACCGS would be controversial with some, “so we supported it with one caveat — that it not distract from ongoing economic development.”
After all, an $800 million casino does change the equation downtown, and is not exactly the sort of project the City of Homes is accustomed to. Ciuffreda wants assurances that MGM or Penn National won’t ignore the small businesses that are in many ways the city’s backbone.
“We’ve had discussions with both developers, and there seems to be genuine interest in looking at ways for spinoffs of the casino to really benefit small and medium-sized businesses,” he said, noting that a casino is expected to purchase some $50 million to $55 million in goods and services annually.
“We’ve been trying to encourage them to be cognizant of the fact that they’re moving to an area with a lot of small to medium-sized businesses that may not be able to produce the quantity of goods and services they’re looking for, but maybe they can carve out a portion of those goods and services.”
So, the casino is certainly the elephant in the room when planning for the future. But while it’s not possible to move every project forward until the gaming question is settled, city leaders say, there is plenty more going on in Springfield, a community they insist is on the rise — no matter what the Mass. Gaming Commission decides later this year.

City on the Move
When they sat down with BusinessWest, Sarno and Kevin Kennedy, the city’s chief development officer, enthusiastically ran through a deep list of recent and ongoing economic-development initiatives.
Take Union Station, for example. Sarno cited the impact of other Union Station projects undertaken in various cities, from New Haven, Conn. to Washington, D.C. “In D.C., it was a decrepit, crime-riddled, drug-infested area, but when Union Station was done, it changed the whole thing. It’s not only about transportation; it’s an economic catalyst.”

ACCGS Executive Director Jeff Ciuffreda

ACCGS Executive Director Jeff Ciuffreda says many downtown businesses no longer have the “bunker mentality” that prevailed after the recession.

Kennedy also mentioned the interest UMass Amherst has shown in a downtown location. “That is real. We’re having discussions with them, and we’re expecting they will come to fruition, and a year from this fall, it’ll be the UMass Springfield campus.” That’s an important development, he said, “because bringing students downtown brings vibrancy; it creates excitement. It helps with the restaurants and all the retail along Main Street.”
And with the completion of the data center and a recently announced, $25 million redevelopment of the Indian Motorcycle property in Mason Square — a project being undertaken by American International College and First Resource Development Co. — the State Street corridor continues its impressive momentum. “AIC is really happy,” Kennedy said. “MassMutual is happy. The residents of Mason Square are happy.”
Ciuffreda noted several other recent successes, from new life in the former federal building on Main Street to the downtown relocations by the likes of Thing5, Accountable Care Associates, Cambridge College, and other businesses, to small but noticeable aesthetic improvements, such as James Kitchen’s art installations.
Then there’s the just-announced lighting project being undertaken along some of the city’s main thoroughfares: on Main Street in the downtown club district, on North Main Street in the North End, and along Sumner Avenue near the entrance to Forest Park.
The city has teamed up with Western Mass. Electric Co. to replace outdated light fixtures in those areas with lights that are both brighter and more energy-efficient, with an eye on expanding the effort to other neighborhoods.
Particularly in the historic neighborhoods, Kennedy said, the old, decorative light fixtures have a place, but the switch “saves us money and saves WMECo money, and citizens benefit because we’re changing the whole image of downtown safety and security; by improving the lighting, people will have more confidence to come downtown, and they’ll feel more safe and secure.”
Ciuffreda understands the reason for the change, noting that chamber members are being asked for their feedback on the new lights being tested. “I’ve heard people say, ‘I went to a Falcons game, and for the first time in a long time, I felt safe after I left, but then I walked down the street, and it was kind of dark.’”
“We want people to tell us what they think,” Kennedy said. “What we’re trying to do downtown is change the whole lighting arrangement, from decorative lighting to better illumination. In addition, we’ll soon be announcing a new security arrangement downtown so, generally, when someone gets out of work downtown, they’ll see a cop. When they go to an event at the MassMutual Center or CityStage, they’ll see a cop.”
“When people feel safe, they’re more likely to visit, and more bodies on the street means more vibrancy,” added Sarno, noting that further economic development will be limited unless the city addresses the safety issue — both perception and reality. “We’ve thought this out very well, and we’re trying to connect all the pieces of the puzzle. There’s a lot of work that might not seem very sexy up front, but behind the scenes, it’s helping us do the more sexy things.”

Still Standing
Impressively, Sarno noted, all this is taking place in the wake of a devastating tornado that ripped through several city neighborhoods in June 2011. A strategic disaster-recovery plan has been in the works for almost two years, but now federal money is beginning to arrive — including $21.9 million from the Department of Housing and Urban Development and $1.3 million from the Federal Emergency Management Agency — to put the plan into action.
“We were dealing with the disaster 24/7 for three months. And in the first two weeks, we started to think about how this could be an opportunity to redefine the city,” Sarno said. “That’s when we started piecing together DevelopSpringfield; we wanted a vision not only for the affected area, but a chance to redefine the whole city — to highlight strong areas and make areas in need better. Now that the money is starting to come in, we’re seeing fruit from these projects.
“It’s tough enough for an urban center as it is, and we were hit with one disaster after another,” he said of the freak weather events of 2011 and the natural-gas explosion downtown last fall. “A lot of people thought the tornado was a haymaker, the knockout. But the exact opposite happened. After seeing our resiliency, people are taking a second look at Springfield. We’re not saying we don’t have urban challenges; we do, and we’ll conquer them. But people have their eyes on the city.”
Kennedy agreed. “Confidence is back in Springfield,” he said, adding that progress has been aided by the “reliable and predictable way of going about our business. We developed a strategy and stuck to that strategy, as opposed to being all over the lot.”
Yet, Ciuffreda was quick to add that some projects — from the next phase in a downtown parking study to a UMass Springfield campus — simply can’t move forward until the site of the casino is known.
“My feeling is, [UMass] wants to do something that won’t compete with the other colleges and universities, but until the casino is sited, it makes it difficult for them to figure out where they want to be,” he said. “The parking, the lighting, the UMass presence — they’re all being overshadowed. Now, you can’t rush an $800 million development, but these other things can’t wait in the wings forever.”
That said, “the mayor and Kevin (Kennedy) have an eye on all of this and haven’t been distracted by casinos,” Ciuffreda was quick to add. “All these other projects seem to be getting their due attention.”
Even the 2009 decision to increase the mayoral term from two years to four has had an impact on development, Kennedy said, because it means the mayor no longer has to spend more than half his term in campaign mode. “It gives you the time to sketch out the vision and, more important, implement and execute that vision. That’s what we’re in the midst of doing now.”
Added Sarno, “you’ll always get naysayers asking ‘why are you making that move?’ But it’s like a chess game. Each move sets up another move, although it might not always be obvious.”

Better Days
From the chamber’s perspective, Ciuffreda said, Springfield is on the rebound from the Great Recession.
“Starting three years ago, we could see some small and mid-sized companies leaving the chamber, for mostly economic reasons,” he said. “We haven’t seen that in the last year or so; our numbers show a firming up of the economy. We’re seeing more participation in our programs. Folks aren’t in as much of a bunker mentality downtown — they’re coming out, they’re moving forward. I think there’s some momentum there.”
How a potential casino impacts that progress, both positively and negatively, remains to be seen.
“I can’t lie to you; there will be small businesses that will be hurt if Springfield wins the gaming license,” he noted. “But our hope is that, through employment and other opportunities, we can minimize those losses. Our real concentration is on maximizing the upside, the spinoff that will occur in these other areas. On balance, the chamber decided there was more good than bad, more upside than downside. That’s why we’re supportive of it.”
Meanwhile, Kennedy said, it’s business as usual on the economic-development front, and city leaders aren’t about to sit around waiting for the Gaming Commission’s verdict.
“Everyone knew the downtown was a problem, and we had to do our homework and spadework before we could fix it,” he told BusinessWest. “Even without the casino, if you add up Union Station, Indian Motorcycle, different road projects, the new schools — those are real, and we’ll see more things happening over the next two years. So we are working really hard to make sure we are not casino-centric, because we may not get the casino.”

Joseph Bednar can be reached at [email protected]

Commercial Real Estate Sections
Northampton Commercial Real Estate Market Remains Resilient

Patrick Goggins

Patrick Goggins, owner of Goggins Real Estate, says the resiliency of the Northampton commercial real estate market is no accident — it results from the city’s welcoming atmosphere.

John Williamson says Northampton has a magnetic quality that draws a broad spectrum of people to its businesses, restaurants, retail shops, and entertainment venues. And that quality has allowed commercial real estate not only to weather the economic downturn, but register unprecedented growth over the past two years.
“It’s so far and away from other markets, there really is no comparison,” said the president of Williamson Commercial Properties LLC in Springfield.
Steve Jasinski agrees. “The Northampton area seems to have been isolated from the downturn in the economy, it didn’t suffer the same pitfalls that occurred in other areas,” said the broker at Delap Real Estate LLC in Northampton and Amherst, explaining that the city’s economic and social diversity, strong employment base, and unique character of its downtown have provided a formula for success that is reflected in the value of commercial property.
But Patrick Goggins, owner of Goggins Real Estate in Florence, who has been in this business for more than 40 years, says the steadiness of the market is no accident. Instead, it results from a collective commitment on the part of business owners who have devoted time, energy, and thought to creating an atmosphere that is personal and welcoming to visitors.
He told BusinessWest the reason for Northampton’s success is fairly simple. “People are doing their own thing, but many businesses on Main Street are run and managed by owners who are here day in and day out. It adds a personal touch, which brings with it personal attention and gives them a better chance of succeeding and understanding the community and its needs. They know that connecting the dots is important, so they are a very active group, and when they see something is needed, they pitch in.”
Officials at Smith College have also joined forces with business owners to keep downtown vibrant, and have played a significant role in its financial success. “The town and gown works well here,” Goggins said, adding that the college has supported the Chamber of Commerce, Business Improvement District, Academy of Music, the new fire station under construction, and other organizations that play a role in the city’s unfalteringly robust economic climate.
Brokers John Williamson, left, and Steve Jasinski

Brokers John Williamson, left, and Steve Jasinski say downtown Northampton offers people a place to shop and dine in an intimate, personal setting.

Jasinski said the five colleges and the fact that many Smith College graduates choose to return to the area, adds to the vitality.
“People leave here and talk about the diversity of Northampton — we’re known throughout the country and you can go to different parts of the world and mention the city and people recognize the name,” he noted. “But people have been key to its success and keep the economy going.”
Downtown and King Street are home to most of the commercial real estate, and two new banks, three car dealerships and other businesses recently opened their doors or are under construction on King Street. “It’s our commercial strip,” Jasinski explained. “And it isn’t just growing, it’s booming.”
Williamson agrees, and points to new developments such as Northampton Crossing, (the former Hill and Dale Mall), which sat vacant for about 20 years, but was purchased two years ago and is being re-developed into medical offices and retail shops. “King Street plays an important role in the balance of the Northampton commercial market,” he said.
Signs of vitality can also be seen at the gateway to the city, which officials designate as the area off Exit 18 from I-91 near the Clarion Hotel. A new 30,000-square-foot office building was completed there about a year ago.
“It was fully leased three months later,” said Williamson, adding that a second, similarly sized building is under construction. “There is not another office market anywhere in Western Mass that has this amount of positive absorption.”

New Frontiers
Goggins said that when he was a student at UMass Amherst, the businesses in downtown Northampton existed to serve the needs of the local community.
“In the late 60s, there were five men’s clothing shops and five hardware stores downtown,” he recalled, adding that the marketplace catered to men.
Fast forward to the early ’70s, when Fitzwilly’s restaurant opened and proved that it was possible to have a business that could cater to both college students and their parents.
“It was a new marketing concept for the area,” Goggins said, noting that it was the catalyst that changed the complexion of the downtown landscape. “But the interesting part is that it was not something that was promoted or orchestrated. There was no magic plan; it just evolved naturally through entrepreneurship. But it took people with nerve to open businesses here.”
In time, it became fashionable to have an office downtown, which led to a demand for housing there, Goggins recalled.
Jasinski said the large number of residences in and around Main Street contribute to the economy and strength of the city. “One of the key components to the success of downtown is that it is a neighborhood,” he told BusinessWest.
However, Goggins said the character of the buildings has remained the same for generations. He noted that in the mid ’70s the city council voted 5-4 against urban renewal at a time when other communities were embracing it and knocking down buildings in blighted areas.
“It was a very, very important vote and presented the base from where we have grown,” Goggins said. So, although apartments and condominiums were carved out of underutilized space on the upper floors of buildings, “they never changed architecturally, although they have been enhanced.”
He cites education as the primary economic driver in the city and said it has been a steadying force.
Jasinski concurs, and adds healthcare to the conversation. “We have great employers here, and jobs create a strong economy,” he said, as he talked about the five colleges and Cooley Dickinson Hospital. “And anyone who comes to Northampton seems to fall in love with the city due to our diversity, uniqueness, and the warmth of the community. You can walk down Main Street to Smith College and go through the gardens and greenhouse and around Paradise Pond. There is a lot to do and people are key to the success of the economy as they keep it going.”
It is also significant that rents have not risen significantly. “I am renting some spaces for the same price per square foot that they went for 10 years ago,” Goggins said.
But that doesn’t mean they are low. Downtown rents range from $25 to $40 per square foot, with locations closest to Thornes Market on Main Street capturing the high end of the market.
“The average is about $25 per square foot, which is comparable to what you would find in much larger cities,” Goggins said. “There isn’t even a close comparison anywhere else in the area.”

Changing Landscape
King Street is experiencing rapid commercial growth due to zoning changes instituted two years ago. “It was the only area where there was available land, but it was not conducive to commercial development so in the past people couldn’t take advantage of it,” Goggins said.
The change resulted from efforts on the part of the City Planning Department, the chamber, a group of residents, and a number of individuals, including Goggins, to position that area for growth.
Since that time, auto dealerships and other businesses have sprung up and continue to grow. “There are really only two parcels left that are right for development,” Goggins said. “The growth there has been a real eye opener for people.”
Williamson said King Street plays an important role in the balance of Northampton’s commercial market and allows institutions such as banks to have drive-up windows, something that’s not possible downtown. “There are two new auto dealerships under construction and Baystate Medical Center plans to have a medical clinic at Northampton Crossing. Most of the space there has already been pre-leased,” he said.
Another development that has been well received is the River Valley Co-op at the extreme north end of King Street. “It does a really bustling business,” Williamson said.
Goggins told BusinessWest that the city Planning Department is also interested in developing the corridor off Exit 18 on I-91. Cooley Dickinson Hospital is one of the primary tenants in the new office building there, and he expects the site that is under construction to be dominated by medical offices.
Meanwhile, property on Village Hill, built on the grounds of the former Northampton State Hospital, has also been in demand. L-3 KEO (formerly Kollmorgen) relocated there from King Street, a boutique hotel is being created in a building that once housed male attendants at the state hospital, and 9,000 square feet in a new 12,000-square-foot office building under construction are already under lease.
Goggins played a role in the revitalization, and said 150 of the 300 housing units planned for the site are complete and there are plans for several more buildings, which will contain a combination of office, industrial, and retail space.
The site is only three quarters of a mile from downtown, and although most tenants and building owners have been downtown for a long time, real estate opportunities do exist. The building on Main Street that housed the Mountain Goat is for sale, and a building across the street was recently sold to an individual who plans to renovate it.
“There is a lot of demand for property to lease as well as buy,” Jasinski said, adding that businesses often open on side streets, then add a second location on Main Street or eventually move there.
But real estate doesn’t come cheap. “A high end multi-tenant building in downtown Springfield that was fully occupied recently sold for $41.25 per square foot, where a similar building in Northampton would cost in excess of $200 per square foot,” Williamson said. “That really illustrates the difference between the Northampton market and other central area district markets. But the amount of availability is just about perfect, and there is just the right amount of churn. There is not so much vacancy that it is a deterrent to the market, but there is enough to satisfy the requirements of businesses as they come into Northampton for the first time.”

Bright Outlook
Williamson said the demand for commercial space indicates there will be a need for additional construction in the city. “The future bodes well for continued office development, and people can expect to see the announcement of other developments in the next year. Plus, values on Main Street will continue to appreciate at very respectable rates,” he predicted.
Goggins agreed. “The image of Northampton is consistent as it is an oasis that people like to come to,” he said. “So, the value of property has held up, which is an indication of how solid the community is. It has been able to prosper and ride out the cyclical downturns because the real estate market is directly related to the perception of Northampton from the outside in.”
Which continues to be a magnetic force that lures visitors from the local area and beyond.

Departments Picture This

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A Living Treasure

PriorAwardThe annual Dorothy Jordan Pryor Award and Lecture at Springfield Technical Community College honors a “living treasure” such as Pryor, the former English teacher, Affirmative Action officer, and trustee. The 2013 recipient, Setta McCabe, retired director of Public Relations and Publication and current WTCC-FM board member, spoke on the history of the college and the radio station.

Sports Minded

GSCVBThe Greater Springfield Convention & Visitors Bureau (GSCVB) recently launched the new Western MA Sports Commission, which will purse, attract, and support sporting events and sports-related business opportunities that positively impact the Western Mass. economy. During ceremonies at the MassMutual Center, a new logo was unveiled, and John Heaps, president of Florence Savings Bank, was introduced as chairman of the commission, Other members of the board, seated from left, are: Thomas Burke, Granby High School Coach; Steve McKelvey, associate professor and graduate program director at UMass Amherst; Shannah McArdle, director of sports marketing for the Mass. Office of Travel and Tourism; Louise Hines, director of sports and event marketing for the MassMutual Financial Group; John Doleva, president and CEO of the Naismith Memorial Basketball Hall of Fame; Paul Dinn, president of Dinn Brothers Trophy, Inc.; and J. Adam Filson, general counsel of Jiminy Peak Family of Companies. Other commission members not pictured include Kenneth Sinkiewicz, deputy director, of the Mass. Convention Center Authority, and Henry Thomas III, president & CEO of the Urban League of Springfield.

Naming Rights

EDnamedforGrinspoonandTrodermanBaystate Medical Center’s adult emergency department recently benefited from a  $1 million gift from local philanthropic leaders Harold Grinspoon and wife, Diane Troderman. In appreciation, the Level 1 adult trauma facility’s new name will be the Harold Grinspoon & Diane Troderman Adult Emergency Department at the Baystate Medical Center Emergency & Trauma Center. It joins the Sadowsky Family Pediatric Emergency Department as the two named elements of the new Emergency & Trauma Center at Baystate, which opened in December 2012. The Emergency & Trauma Center encompasses more than three times the size of the hospital’s former emergency room, with twice the number of private, adult patient-care spaces. Grinspoon established the Harold Grinspoon Foundation in 1993 in Springfield, and Troderman has been his active partner in all of his philanthropic activities. Pictured (from left) during the announcement event are: Mark Tolosky, president and CEO of Baystate Health; James Sadowsky of the Baystate Health Board of Trustees; Grinspoon; Troderman; John Davis of the Baystate Health Board of Trustees; Dr. Benjamin Liptzin, chair of the Department of Psychiatry, Baystate Health; and Dr. Richard Engelman, chief of Cardiac Surgical Research at Baystate Medical Center.

Unlimited Pride

20130411hru011220130411hru010120130411hru0105Human Resources Unlimited recently staged its annual Recognition and Fundraiser event at Springfield Country Club. Employer partners and volunteers were honored and successful program members were recognized. At top, from left, accepting the 2012 Armand Tourangeau Volunteer of the Year award is Jeff Lander, center, founder of Appilistic, flanked by (from left) Susan Smith, senior employment coordinator, Forum House; Renee Kosciusko, daughter of Armand Tourangeau; Carol Tourangeau, wife of Armand Tourangeau; and Susan Beckwith, program manager, Forum House. Middle left, 2012 Rookie Employer Award recipients (from left), Jackie Huntley, Tradewinds program member; Deb Post, HR manager, and Russell Prentiss, general manager, both of the Sturbridge Host Hotel & Conference Center; Michael Forest, program manager, Tradewinds; and Winnie Siano, senior employment coordinator, Tradewinds; Bottom, Donald Kozera, President of Human Resources Unlimited (second from right) poses with the winners of the Employer of the Year Award, representing Holiday Inn Express & Suites in Westfield. From left are: Arlie Meade, sales manager; Nathan Byrd, general manager, Ashish Patel, president, and Jacquie Clayton, guest services manager.
Photos by Paul Schnaittacher

Engineering Excellence

Tighe&Bond_MAACECAwardThe American Council of Engineering Companies of Massachusetts (ACEC/MA) presented Westfield-based engineering firm, Tighe & Bond, with a Gold Award during its 2013 Engineering Excellence and Awards Gala in Cambridge. The annual competition recognizes recent engineering achievements that demonstrate the highest degree of merit, ingenuity, complexity, and client satisfaction. This Gold Award recognized innovative upgrades that Tighe & Bond recently completed for the town of Sturbridge’s wastewater treatment facility, which became the first full-scale combined BioMag/CoMag wastewater system in the nation. The implementation of two new cutting edge and effective treatment processes, BioMag and CoMag, have increased wastewater treatment efficiency, improved water quality, as well as reduced costs and overall environmental impact. Sharing a moment after the awards ceremony are, from left, Ko Ishikura ACEC/MA president; Gregory Morse, Sturbridge DPW director; Ian Catlow, Tighe & Bond senior project manager; Mike Becker, Tighe & Bond construction observer; Peter Piattoni, ACEC/MA Awards chair; and Shaun Suhoski, Sturbridge town administrator.

Not Just Business as Usual

DSCF0153DSCF0165The Springfield Technical Community College (STCC) Foundation hosted its fourth annual Not Just Business As Usual event on April 4 at the Naismith Memorial Basketball Hall of Fame. In celebration of 40 years of excellence in Nursing at STCC, keynote speakers included “The Three Doctors,” Dr. George Jenkins, assistant professor of the Clinical Dentistry Section of Adult Dentistry at Columbia University; Dr. Rameck Hunt, board certified internist at University Medical Center at Princeton and assistant professor of Medicine at Robert Wood Johnson Medical School; and Dr. Sampson Davis, board certified emergency medicine physician at St. Michael’s Medical Center, Raritan Bay Medical Center and Easton Hospital, and assistant medical director of the Emergency Department at Raritan Bay Medical Center. As teenagers surrounded by negative influences with few positive role models growing up on the streets of Newark, N.J., the three friends made a pact to stick together, graduate college, and achieve their dreams of becoming medical doctors. All are now well known for their work in delivering messages of hope and inspiration. Over the past two years, the STCC Foundation event has provided more than $100,000 to support college and student needs. At top (from left) Drs. Davis, Hunt, and Jenkins sign copies of their books, The Pact, We Beat the Street, and The Bond. Bottom, above, Ira Rubenzahl, president of STCC, poses with Frank Colaccino, CEO at Colvest Group (center), and John Heaps, Jr., president of Florence Savings Bank.

Agenda Departments

Obamacare and Employers
April 24, May 2, May 9: Royal LLP — a law firm specializing exclusively in management-side labor- and employment-law litigation and preventative practices to avoid litigation — will join experts on the Patient Protection Affordable Care Act (known as Obamacare) in presenting an informational series of workshops that will provide an interactive, step-by-step analysis of how the act applies to both small and large employers, including what employers should be doing now to prepare for the 2014 mandates. All sessions will be held at the Hu Ke Lau in Chicopee. Session 1, which will be held on April 24, will provide a general overview of the law, including key components, potential implications, and impact on employers. Session 2, which will be held on May 2, will address the shared responsibility requirements. Session 3, which will be held on May 9, will detail the impact of the law. For more information, contact Ann-Marie Marcil at (413) 586-2288 or [email protected].

Elevator Pitch Competition
April 24: Five local community banks will sponsor a live elevator pitch competition at the awards banquet for the Harold Grinspoon Charitable Foundation’s Entrepreneurship Initiative, starting at 5 p.m. at Log Cabin in Holyoke. Representatives from each bank — Berkshire Bank, Country Bank for Savings, First Niagara Bank, PeoplesBank, and United Bank — will also serve as judges. An elevator pitch is an overview of an idea for a new business. The name reflects the fact that an elevator pitch can be delivered in the timespan of an elevator ride. The term is used when an entrepreneur pitches an idea to a venture capitalist to receive funding. The competition will feature a student representative from each of the participating local colleges: American International College, Amherst College, Bay Path College, Elms College, Greenfield Community College, Hampshire College, Holyoke Community College, Mount Holyoke College, Smith College, Springfield College, Springfield Technical Community College, UMass Amherst, Western New England University, and Westfield State University. The judges will choose the top three students, who will receive cash awards. All participants will receive a stipend for participating. This is the eighth year that an elevator pitch competition will be held at the event. Other program highlights include keynote speaker Stanley Kowalski, founding CEO and chairman of the board of FloDesign in Wilbraham; an Entrepreneurs & Awardees Exhibit featuring 59 student entrepreneurs from area colleges; and the announcement of the Grinspoon, Garvey & Young Alumni Spirit Award. For more information about the banquet, e-mail Cari Carpenter at [email protected].

Strategic Investments in Owner-Operated Companies
April 25: Peter Doyle, chief investment strategist at Kinetics Mutual Funds, will deliver a presentation titled “A New Paradigm: Strategic Investments in Owner-operated Companies” at 4 p.m. at the Colony Club in Springfield. The event, sponsored by Martinelli Discenza Investment Counsel, was postponed from its original date of Feb. 25. Owner-operators are broadly defined as corporate management teams that have considerable personal wealth invested alongside their shareholders. The actions of these management teams over the past several years — actively allocating capital into attractive opportunities and engaging in various actions to enhance shareholder value — stand in stark contrast to those of agent managers, who have focused on cost-cutting measures to maintain margins at the possible expense of future growth. To RSVP for the event, call Lisa Kozak at (413) 567-8411.

EANE Management Conference
April 25: The Employers Association of the NorthEast will hold its ninth annual management conference, “Leadership and Mentorship in Action,” at the Holiday Inn in Enfield, Conn. The conference will address the direct impact of mentoring and leadership development on the growth and success of organizations. Keynote speaker Doug Dvorak, a contributing author to the bestselling book The Masters of Success, will present his popular program “The Magic of Mentoring.” Additional presenters include Ravi Kulkarni and Lynn Turner of ClearVision Alliance. A panel of representatives from area companies will discuss next-generation mentoring. Conference breakout sessions include “Leadership Behavior and Employee Engagement,” “Building Effective Teams,” and “DiSC Work of Leaders.” For more information about the conference, contact Karen Cronenberger at (877) 662-6444 or [email protected]. To register, call (877) 662-6444 or visit www.eane.org.

A Heart Healthy Toast
April 26: Whether you’re a seasoned wine enthusiast or a recreational wine drinker, you will find something pleasing to your palate at “A Heart Healthy Toast,” sponsored by the Holyoke Hospital Auxiliary Assoc. from 6 to 8 p.m. at Hamel’s Summit View Banquet House in Holyoke. The tasting will spotlight a variety of wines from around the world that have been carefully selected by Liquors 44. Everyone attending will be provided with a personal program booklet where notes can be taken for each wine, noting likes and dislikes. Vendor representatives will be available to give their tips for using all the senses to taste wine and how to call out subtle variations. The funds raised will be used toward the “Extreme Makeover” of the Work Connection located at Holyoke Medical Center. The Work Connection is an occupational health clinic located at the medical center that provides health services to local businesses in the area. Tickets for the wine tasting are $40 per person and will include a selection of Hamel’s hot and cold appetizers, fruit, and cheeses. Call Deborah Long Smith at (413) 534-2568 to order tickets.

EASTEC 2013
May 14-16: EASTEC, the premier manufacturing exposition in the Northeast will be held at the Eastern States Exposition in West Springfield on May 14 and 15 from 9 a.m. to 5 p.m. and on May 16 from 9 a.m. to 3 p.m. The event will offer a variety of exhibitors, educational offerings, tours of nearby facilities, and much more. For more information and to register to attend, visit www.easteconline.com.

40 Under Forty
June 20: BusinessWest will present its seventh class of regional rising stars at the annual 40 Under Forty gala at the Log Cabin Banquet & Meeting House in Holyoke. The event will feature music, lavish food stations, and introductions of the winners, who are profiled at length in this issue. Look for event details in upcoming issues of BusinessWest, or call (413) 781-8600, ext. 100 for more information.

Western Mass Business Expo 2013
Nov. 6: Planning is underway for the Western Mass Business Expo 2013, a day-long business-to-business event to take place at the MassMutual Center in downtown Springfield. This fall’s show, the third edition of the Expo, which is again being produced by BusinessWest, will feature more than 100 exhibitors, seminars on timely issues of the day, special Show Floor Theater presentations, breakfast and lunch programs, and the wrap-up Expo social, which has become a not-to-be-missed networking event. Details of the specific programming will be printed in upcoming editions of BusinessWest, and can also be seen online at www.wmbexpo.com or www.businesswest.com. For more information on the event or to reserve booth space, call (413) 781-8600, ext. 100.

Opinion
Career Readiness Critical for Young People

School to Career Connecting Activities, a collaborative effort between public and private partnerships, is led by 16 local workforce-investment boards in Massachusetts, including the Regional Employment Board of Hampden County (REB).  The initiative provides high-school students with paid internship opportunities in a wide array of occupations and industries, from which students gain exposure to real-world work opportunities and learn professionalism, responsibility, and job-readiness skills that help them become attached to the workforce in the future.

Recent national surveys of employers and human-resource managers have found increasing concerns with the employability and skill deficiencies of young workers.

In 2007, connecting activities leveraged more than $45 million in employer wages, putting more than 17,500 students in internships at 6,500 employer sites. In 2012 alone, with funding at only $2.75 million, more than 9,800 students were placed in internships at 3,500 employer sites. With funding in the state budget for fiscal year 2013 at only $750,000, the program is facing extreme challenges.

In Hampden County, we were able to put 658 students into internships with 258 area employers in various industries, including WGBY, Big Y, Baystate Medical Center, Mercy Medical Center, Giggle Gardens, Holyoke Health Center, Polish National Credit Union, and many more.

The need for increased employment for the state’s teens is greater than in many years. According to a recent study by Northeastern University’s Center for Labor Market Studies, “in 2012, only 26% of the state’s teens found themselves able to obtain employment during an average month.” This was the lowest state teen-employment rate recorded over the past 50 years for which such data exists.  Fewer than one of seven low-income teens in high school in 2011 worked in Massachusetts.

The Center for Labor Market Studies has documented that those students who work during their senior year or in multiple summer jobs over their high-school years are more likely to transition into college or the labor market after graduation. The habits learned in the workplace, such as productivity, teamwork, collaboration, problem solving, management, and initiative, are paramount for the Commonwealth’s youth.

In Hampden County, the REB is working with 18 different schools through four lead school-to-career connecting-activities coordinators, who assist students and the school’s career facilitators to secure employment and optimize learning through internship opportunities. With the decreases in funding since 2007, we unfortunately cannot serve all the students who could benefit from an internship.

Student experiences speak for themselves. At Minnechaug Regional High School in Wilbraham, two youths who participated in the School to Career Connecting Activities Program had plenty to say about their experiences.

A senior named Hannah, who placed at the town’s Engineering Department, said, “I loved my experience. It was a great way to learn about your intended college major [Civil Engineering]. I learned what was like to work in an office and how to use office equipment. I gained a lot of skills working on the computers with different programs. I learned how to interact with customers and employees. I learned how to be more observant and make certain connections. I learned that it is OK to take risks and be wrong and how to voice my opinion and not hide my ideas.

Meanwhile, a senior named Matthew, who placed at FloDesign, an innovative business incubator that specializes in contract engineering and technology commercialization, noted that “my goal of learning about the field and solidifying my decision on becoming an engineer has been met. By working on various projects and doing things actual engineers do, I have learned more than enough to be sure that this is the type of career I am looking for. ”

School to Career Connecting Activities staff are dedicated to providing opportunities for youth to develop their career skills while in school. The investment by the state Legislature in expanding these career-building tools and experience for its youth will help strengthen future employment opportunities for the young people of Massachusetts. This is not only an investment in the students themselves, but also in the Commonwealth’s future workforce and its economic growth potential.

For more information, contact Bill Ward, REB president and CEO, at (413) 787-1547.

 

Joseph Peters is chair of the Regional Employment Board of Hampden County. Andrew Sum is director of the Center for Labor Market Studies at Northeastern University.

Environment and Engineering Sections
WNEU Creates New Civil and Environmental Engineering Program

Student Emily Lynch, seen here with Kenneth Lee

Student Emily Lynch, seen here with Kenneth Lee, says she’s always been fascinated by bridges, and ultimately decided to make civil engineering a career.

When asked about the factors that drove Western New England University’s decision to create its new Department of Civil and Environmental Engineering, Ken Lee summoned some telling numbers.

The first were from the Bureau of Labor Statistics (BLS), which is projecting an employment growth rate of 19% for civil engineers and 22% for environmental engineers — one of the fastest-growing subspecialties within the broad realm of civil engineering — between 2010 and 2020.

Another number — and probably the one fueling those BLS projections — comes from the American Society of Civil Engineers, which, when assessing the nation’s aging infrastructure, projects that $71 trillion in infrastructure investments will be made by 2030.

“Everything we make in civil engineering has a lifespan,” said Lee, chairman of the new department, in an article announcing his appointment in the university’s alumni publication, the Communicator. “Buildings and bridges are crumbling, and transportation systems need overhauling. We need plenty of engineers to plan, design, analyze, develop, organize, and manage retrofits and new construction projects.”

Couple these projections with the university’s desire to grow its well-regarded College of Engineering, and civil engineering, with a strong focus on environmental engineering, was the logical path to take, said S. Hossein Cheraghi, dean of the College of Engineering.

“We want to grow, and one of the best ways to do that is with new programs,” he said, adding quickly that existing offerings are also being expanded. “And when we looked at different programs and at statistics from the Department of Labor in terms of future opportunities for employment, we realized that civil engineering made the most sense for us.”

He told BusinessWest that talks on such an expansion were initiated about three years ago, and they culminated with a program launched last fall with 13 students.

Emily Lynch is one of them.

A Connecticut resident, she said that, while growing up, she became fascinated by bridges — “I would drive over them and just be awestruck,” she explained — and by her junior year had decided to make civil engineering a career.

“I liked math more, but I didn’t want to make that my livelihood,” she went on. After being alerted by her guidance counselor to the new program at WNEU, she made that school one of three options — Wentworth in Boston and the University of New Haven were the others — and eventually decided to became part of the inaugural class at the Springfield campus. “There’s supposed to be a huge jump in demand for civil engineers in the years to come; I want to be part of that.”

Creation of the Civil Engineering program is one of the primary drivers of a planned expansion of Sleith Hall, home to the College of Engineering, said Cheraghi, noting that plans call for 8,600 square feet of new space, as well as renovations and upgrades to the entire building.

Work on the two-story addition, projected to cost between $12 million and $13.5 million, is expected to begin this summer, he went on, adding that the new area will house laboratory space for the new program, as well as labs for Biomedical Engineering, classroom space, and a computer lab. The project also includes building-wide HVAC improvements, the installation of a new sprinkler system, and technology improvements.

S. Hossein Cheraghi, dean of the College of Engineering

S. Hossein Cheraghi, dean of the College of Engineering, says the new civil engineering program will help “internationalize” the WNEU campus.

“The addition of new programs and growth in existing programs in the College of Engineering is driving the need for additional space,” said Cheraghi, noting that the school also added a doctoral program in Engineering Management and has seen increasing enrollment in its existing engineering programs — biomedical, electrical, industrial, and mechanical.

For this issue and its focus on engineering and the environment, BusinessWest takes an in-depth look at the university’s new Civil Engineering degree and what it means for both the school and those currently enrolled in the program.

 

Bridging a Gap

When asked why he left a teaching position at UMass Lowell to come to WNEU, Lee broke into a wide smile.

“Opportunities to lead a new program, especially a civil engineering program … those are quite rare today,” he said, adding that he was looking forward to the many challenges involved with getting such an initiative off the ground, from hiring faculty to recruiting students to setting the tone academically. “This is a very exciting career opportunity.”

It came about, said Cheraghi, because the School of Engineering, and the university as a whole, has set some ambitious goals for continued growth, and civil and environmental engineering represented both the most glaring area of need and the best opportunity for expansion, given those projections from the BLS.

The new program also fits nicely into a recently developed strategic plan for the university, one component of which is the goal of greater “internationalization” of the campus and thus the student population.

“We want to bring more international students to our campus,” he explained. “And this is one of the most important programs for developing countries. There is a global need for civil engineers.”

Meanwhile, an analysis of the regional market revealed that there was a need for — and thus room for — another civil engineering program.

Departments exist at UMass Amherst and UConn, said Lee, and there is an associate’s degree program at Springfield Technical Community College. A two-year degree opens some doors to employment, he went on, but a baccalaureate or graduate degree offers access to many more opportunities.

Cheraghi told BusinessWest that the new program will play a large role in helping the College of Engineering continue its pattern of growth and reach ambitious targets for enrollment. Indeed, the Engineering department had 320 students in 2009, boasts 475 at present, and would like to be at 600 within five years, he said, adding that these numbers clearly indicate the need for the planned expansion of Sleith Hall.

While the Civil and Environmental Engineering initiative is new, Lee said, the university has a long history of excellence in engineering, and this will certainly help draw people to what’s called the CEE program. WNEU’s comparatively smaller class sizes and its so-called ‘theory to practice’ approach to engineering education, which provides hands-on experience that enables students to hit the ground running as they enter their chosen careers, are also effective selling points.

These were some of the factors that helped prompt Lynch to eventually choose WNEU. She’s still wrapping up her freshman year, but already has designs on what she wants to do professionally.

“I’m leaning toward the structural side of civil engineering — building roads and bridges and fixing the many that are crumbling,” she said. “I really want to fix our infrastructure.”

Students in the program will focus on the latest advances in the design, construction, and maintenance of today’s infrastructure, including roads, bridges, buildings, airports, tunnels, dams, water-treatment and supply networks, and environmental systems, said Lee, adding that students will study the many areas of civil engineering, from structural engineering to geotechnical engineering.

The WNEU program is somewhat unique, he went on, because of its separate environmental engineering concentration. Students who take that route will get a civil engineering degree, which provides great flexibility, he explained, but also a strong focus on issues involving water — from treatment to renewable energy.

Another unique aspect of the program will be the incorporation of ‘green’ engineering techniques and sustainable materials, he said.

“Until recently, efficiency and environmental impacts have not been major parts of the equation,” he told the Communicator. “But now, when you design a building, you want it to be as energy-efficient as possible and use as little water as possible.”

Original projections for the program’s first year were for 10 students, said Lee, adding that, without much (if any) advertising, 13 were chosen from roughly 75 applications. And both of those numbers project to go much higher for year two, with perhaps 140 applications and possibly 20 to 25 students admitted. The goal is to reach 100 students in the program by the time the first class graduates in 2016.

One popular route could be transferring into the program from STCC after completion of the two-year program there, he noted, adding that WNEU can begin accepting transfers when members of the inaugural class reach their junior year.

The university is set to hire a second faculty member for the program for year two, said Lee, who was the first, and add two more for the start of the 2014-15 academic year.

 

On the Right Road

Assessing his career shift and decision to both teach and administer WNEU’s new engineering program, Lee said he believes he’s in the right place at the right time.

And the same can be said of the 13 students in that program’s inaugural class and those who will enroll in the years to come.

Indeed, the projections made by the American Society of Civil Engineers and the Bureau of Labor Statistics would seem to provide ample evidence that he’s right.

Time will tell if WNEU’s large investment will prove worthwhile, but already there are signs that the university is building momentum — in more ways than one.

 

George O’Brien can be reached at [email protected]

Employment Sections
Understanding the Nuances of Employer Liability Under Title VII

Karina L. Schrengohst

Karina L. Schrengohst

You employ Jack and Jill. Jill files a lawsuit alleging that Jack was harassing her and you did nothing to stop it. Can you be held liable for Jack’s conduct? The answer: it depends.

It depends on whether or not Jack supervised Jill. If Jack was Jill’s supervisor, you may be held liable for Jack’s conduct. Under Title VII of the Civil Rights Act of 1964, which is our federal anti-discrimination law, employers may be found liable for the conduct of supervisors who harass subordinate employees.  If, however, Jack was Jill’s co-worker, you may be held liable only if you were negligent in discovering or remedying the harassment.

Problematically, courts across the country interpret what makes an employee a supervisor differently. Therefore, determining who exactly qualifies as a supervisor can be complicated. Some courts have a narrow, employer-friendly understanding that Jack is a supervisor if he has the power to ‘hire, fire, demote, promote, transfer, or discipline’ Jill. Other courts have a broader and more employee-friendly understanding that Jack is a supervisor if you have given him authority to ‘direct and oversee’ Jill’s daily work. The Equal Employment Opportunity Commission (EEOC) also favors this broader definition of supervisor. The U.S. Supreme Court will soon decide which courts have it right.

Maetta Vance, an African-American woman working at Ball State University in the catering department, sued her employer under Title VII alleging racial harassment by several individuals that she worked with. Her allegations include the repeated use of racial epithets (including references to the Ku Klux Klan), threats, slapping her in the face, and physically accosting her while on an elevator. Vance reported this conduct to her employer on multiple occasions. The university investigated each complaint and in some instances took disciplinary action. The courts involved in this case, Vance v. Ball State University, take a narrow view of supervisor liability. The district court and the appeals court both found that an individual Vance considered to be a supervisor, was, in fact, not a supervisor because she did not have authority to hire, fire, demote, promote, transfer, or discipline Vance.

Because a supervisor was not involved, the university could be held liable only if it was negligent. The court did not find the university to be negligent because it promptly investigated each of Vance’s complaints and took disciplinary action when appropriate. Consequently, Vance’s employer was not liable. Vance appealed this decision, and on Nov. 26, 2012, the Supreme Court heard oral arguments, but has not yet issued its decision.

Why should employers be paying attention? This decision could potentially change the current landscape of Title VII litigation and increase the risk of employer liability. If the Supreme Court adopts a broader, more employee-friendly definition of supervisor that includes anyone with authority to direct and oversee an employee’s daily work, it means that more employees have supervisory roles. This also means that there will be more occasions when employers could find themselves facing liability for allegations of discrimination and harassment than they currently do. Therefore, if the court favors a broader definition of supervisor, some employers may want to think about revising job responsibilities so that the portion of their workforce with supervisory roles is clearly delineated.

Regardless of the outcome, employers should take preventative steps to eliminate workplace harassment and reduce their risk of liability. Toward this end, employers should create and implement a written anti-discrimination and anti-harassment policy. In addition, employers should provide training on a regular basis to ensure that all employees understand the company’s policy. And additional trainings should be conducted for employees with supervisory roles to ensure they understand their obligations, know how to recognize what constitutes discrimination and harassment, and know the appropriate steps to take when discrimination or harassment is identified or an allegation is reported.

Employers have even more incentive to train supervisors because, as discussed above, employers are liable for the discriminatory and harassing conduct of employees in supervisory roles. Furthermore, supervisors are the first line of defense;  what they do can either create or prevent additional problems. Providing the proper training to employees in supervisory roles can help shield the company from costly and time-consuming litigation claims. And, finally, employers should establish a complaint procedure and have an investigative process that they uniformly use for all investigations.

Vance serves as a reminder to employers of the importance of taking such preventative measures. When co-workers are harassing other co-workers, one of the things the court is going to consider is whether you took reasonable measures to prevent and correct discrimination and harassment in your workplace. The employer in this case prevailed because it had a policy in place, promptly investigated each complaint, and took disciplinary action when appropriate.

 

Karina L. Schrengohst, Esq. is an attorney at Royal LLP, a boutique, management-side-only labor- and employment-law firm, specializing exclusively in management-side labor and employment-law litigation and preventative practices to avoid litigation. Royal LLP is SOMWBA-certified as a woman-owned business with the Mass. Supplier Diversity Office (formerly known as the State Office of Minority and Women’s Business Assistance); (413) 586-2288; [email protected]

Sections Technology
Report on Innovation Economy Details Opportunities, Challenges

The state’s innovation economy is experiencing three new shifts that present both opportunities and challenges, including the growth of new sectors like robotics and ‘Big Data’ as major economic drivers, according to the annual Index of the Massachusetts Innovation Economy, recently released by the Innovation Institute at the Massachusetts Technology Collaborative (MassTech).

The index benchmarks the performance of Massachusetts in key innovation-economy sectors against nine leading technology states.

“Our innovation economy is both producing new opportunities and facing new challenges. The net outcome is that our innovation economy is growing and supporting our rebound from the economic downturn,” said Pamela Goldberg, CEO of the Massachusetts Technology Collaborative. “Most of our key innovation industries are adding jobs, and newer sectors like robotics and big data are growing at a remarkable pace. There is, however, work ahead to preserve our leadership status as a global hub for innovation.”

Almost 40% of the state’s employment is concentrated in the 11 key sectors of the innovation economy, and employment rose in 7 of the 11 key sectors in the first quarter of 2012. Meanwhile, average annual wages for all innovation industries increased from 2010 to 2011.

The three new shifts identified by the report are:

• New sectors, such as robotics and Big Data, that are growing and emerging as significant economic drivers. Employment in both areas has outpaced that of the entire Massachusetts economy as well as the 11 clusters identified as the innovation economy. Robotics generated substantial gains in employment between 2007 and 2010, and Big Data’s employment grew 21% in that same time period.

• A changing capital landscape. Massachusetts is also experiencing an increase in angel investment, which nearly doubled between 2009 and 2011. Many entrepreneurs are pursuing innovation with smaller capital requirements than in the past, due to factors such as virtualization of company functions. While Massachusetts retained its first-in-the-nation ranking for venture-capital investment per GDP, the dollar amount of venture-capital investment in the state is still below pre-recession levels.

• Competition. Massachusetts retains its position of strength as compared to other leading technology states, but this year’s index reveals that many other states are gaining ground. For example, while Massachusetts ranks second in industry funding of academic R&D per capita, three other leading technology states grew at a faster rate from 2005 to 2010. Analysis indicates that this trend in broad-based growth may be due to the democratization of innovation and entrepreneurship across the country and globe.

“Our innovation economy has become a global calling card for the Commonwealth, and the Patrick-Murray administration’s continued investments in innovation, technology, and life sciences will help keep Massachusetts at the head of the pack,” said Secretary of Housing and Economic Development Greg Bialecki. “The index shows why the administration has called for increasing investments in innovation, education, and infrastructure.”

Added Patricia Flynn, trustee professor of Economics and Management at Bentley University and chair of the Innovation Index Committee, “the index demonstrates the central role the innovation economy plays in jobs, incomes, and long-term economic growth in the state.” However, she noted, “this year’s index highlights why Massachusetts cannot afford to become complacent with its role as an innovation leader, and that now more than ever we need to invest in the state’s innovative people and assets.”

The new edition of the Innovation Index will feature a new, interactive web portal which provides the public with easier access to the information contained within the index, as well as additional charts and data. The web portal also allows for MassTech to update index data throughout the year.

“The index helps us assess where we are as a Commonwealth and informs the debate about where we are headed,” said Patrick Larkin, director of the Innovation Institute at MassTech. “This new index portal makes this data more accessible to all participants in the state’s innovation ecosystem.”

Other highlights from the Index include:

• As of the second quarter of 2012, Massachusetts had the fastest-growing computer and communications hardware sector employment out of the leading technology states, demonstrating the continued vitality of this key component of the state’s tech sector.

• Massachusetts had the highest number of patents per capita in the country for 2011, an increase of 5.4% from 2010.

• Massachusetts’ research institutions attract the largest share of the National Institutes of Health (NIH) extramural research funding per $1,000 GDP among leading technology states.

• Our total science and engineering talent increased 6% between 2000 and 2011, driven by a 33% increase among those who were born outside the U.S. and relocated to Massachusetts during the same period.

In partnership with the Patrick-Murray Administration, MassTech makes strategic investments that help create conditions for innovation to thrive. These include the Massachusetts Green High Performance Computing Center in Holyoke, which helps position Massachusetts as a global leader in Big Data; the Massachusetts Digital Gaming Institute at Becker College (MassDiGI), which supports the digital-gaming sector; a recent spotlight report on the Commonwealth’s manufacturing renaissance; and a new tech-sector internship program launching this spring to support talent retention.

Briefcase Departments

Mass. Career Development Institute to Close Sept. 1
SPRINGFIELD — The Mass. Career Development Institute (MCDI) has announced it will close this fall. In a statement, MCDI Executive Director Timothy Sneed said the agency is currently working to “transition its remaining programs to other community providers” and that the center will close on September 1. In addition to the “steadily declining” funding, Sneed said that “job-training programs that were once unique to MCDI are being duplicated in other places in the community.” MCDI has an annual budget of $2.7 million, of which 41% of funding comes from federal sources and 39% from the state. There are about 250 students currently enrolled in MCDI programs. Those students currently enrolled will be able to complete their training by the end of the academic year this spring. The center’s English for Speakers of Other Languages (ESOL) program will be available until Sept. 1. “The good news,” Sneed said, “is that no one in our community will be without the services, as our core programming, such as nurses-aide training, is available in the community-college system or the vocational education system.” Regarding the 29 people who will lose their jobs because of the closure, Sneed said, “our hope is that, by announcing our plans well in advance of the closing of all operations in September, these workers will have ample time to be absorbed into the workforce where their skills in job training can be utilized.” Founded in 1970, MCDI was created to raise educational-attainment levels and develop workforce skills for individuals as part of a comprehensive program. The goal was to graduate participants into the economy through employment, where they could advance their own economic prospects while contributing to the area’s economic development.

Construction Spending Declines in January
WASHINGTON, D.C. — Construction spending snapped a nine-month string of monthly gains with a sharp decline in January but still rose from year-ago levels, according to an analysis of new Census Bureau data by the Associated General Contractors of America.  Association officials cautioned that across-the-board federal spending cuts known as sequestration, which took on March 1, along with a possible shutdown of the federal government later in March, could hit construction harder than most sectors and dampen demand for needed projects. “At first glance, January was a bad month for construction, with a sharp drop in private non-residential spending, along with small dips in residential and public construction,” said Ken Simonson, the association’s chief economist.  “However, the January figure was higher than the year-ago level. Moreover, steep upward revisions … in the preliminary numbers for November and December suggest January may ultimately prove to have been positive as well.” Construction put in place totaled $883 billion in January, down 2.1% from the December total, which was marked up from an initial estimate of $885 billion to $903 billion on the basis of new data on power and energy construction. The January 2013 total was 7.1% higher than in January 2012. Private residential construction spending was flat for the month and up 22 percent year-over-year. Private nonresidential spending slumped 5.1% for the month but climbed 4.0% year over year. Public construction spending dropped 1.0% for the month and 3.0% over 12 months. “Once more complete data is available, power construction should prove to be a strong category in 2013, along with manufacturing, multifamily, and — at least in the first half of the year — single-family construction,” Simonson said. “But public construction, which has declined year over year for 28 straight months, appears to be headed still lower.” As for sequestration and its aftermath, association analysis suggests that an estimated $4 billion worth of federal construction projects will be cancelled this year alone. “These indiscriminate cuts run the risk of undermining the fragile recovery in demand many contractors are just now beginning to experience,” said Stephen Sandherr, the association’s chief executive officer. “It is hard to encourage major new private sector investments in capital projects when Washington can’t even find a way to avoid fiscal crises of its own making.”

MIT Urges Growth of ‘Industrial Ecosystem’
BOSTON — A new report by the Massachusetts Institute of Technology urgently recommends that the nation rebuild its “industrial ecosystem” of manufacturers, suppliers, research, and skilled labor to support multiple industries, not just clusters of companies dedicated to one particular sector. The report claims that manufacturers with the ability and talent to produce the ideas of entrepreneurs are in increasingly short supply, as U.S. corporations have shifted production offshore and outstourced many other functions, such as research and development, over the last 30 years. “Across the entire industrial landscape, there are now gaping holes and missing pieces,” the report says. “It’s not just that factories stand empty and crumbling; it’s that critical strengths and capabilities have disappeared that once served to bring new enterprises to life.” The report, compiled by 20 MIT faculty members notes that, for innovation and the invention and creation of new products to occur, startup companies and manufacturers must operate close by so that they may draw on each other’s expertise. The MIT task force studied more than 250 companies in several states to better understand how to improve the nation’s ability to manufacture and benefit from products invented, designed, and brought to market by American entrepreneurs and engineers. The U.S. has lost about one-third of the manufacturing jobs it had more than a decade ago. About 30 years ago, the report says, American corporations began shedding large-scale research and development and manufacturing operations, realizing that leaner operations drove their stock prices higher. Increasingly, cutting-edge research and innovation is instead taking place in universities, startups, and government labs, which face challenges moving ideas to commercial production. “The anxieties of the public connected with many of our own deep concerns at MIT about where the American economy is heading,” the report says. “Our question was: what kinds of production do we need — and where do they need to be located — to sustain an innovative economy?”

Life Sciences to Benefit from $9M in Grants
HOLYOKE — During a recent visit to Holyoke Community College (HCC), Gov. Deval Patrick announced more than $9 million in grants for capital projects related to life sciences in Western Mass. He said the grants, paid for with money from the sale of state bonds, fit in with his current budget and its emphasis on spending on infrastructure and especially on education. An educated workforce, he noted, “is as important to us as oil is to Texas and corn is to Iowa.” The grants include $3.8 million to Holyoke Community College for the creation of the Center for Life Sciences in the Marieb Building, in space to be vacated by moving nursing and radiology programs to the former Grynn & Barrett photo studio building the college recently purchased. The grant is the largest received in the institution’s history, said HCC President William Messner. In addition, the Massachusetts Green High Performance Computing Center in Holyoke will receive $4.54 million for life-sciences work. Bay Path College in Longmeadow will receive a $50,000 planning grant, and Springfield Technical Community College will reap $150,000 in planning-grant money. Industries included in life sciences include pharmaceuticals, medical devices, research, and bio-informatics, or the study of complex data in the field of biology. Through the Massachusetts Life Sciences Center, the Commonwealth is investing $1 billion over 10 years in the growth of the state’s life-sciences industry. These investments are being made under the Massachusetts Life Sciences Initiative, signed into law by Patrick in 2008. The governor also announced smaller grants for vocational and technical high schools and high schools in Gateway Cities in Western Mass.: Dean Technical High School and Holyoke High School with $195,000, Roger L. Putnam Vocational Technical Academy with $100,000, Smith Vocational and Agricultural High School with $100,000, Taconic High School in Pittsfield with $88,000, and Westfield High School with $44,333. With the money, high schools will be able to invest in renovated labs and the latest equipment.